Royal Helium closes private placement, stock soars

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Royal Helium (TSXV: RHC) closed on Thursday its oversubscribed private placement first announced in June. Royal raised proceeds of C$1 million through the issuance of 20,000,000 units at a price of $0.05 per unit.

Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.07 for a period of 12 months.

The securities issued under this private placement are subject to a statutory four-month period ending November 10.

With the financing closed, Royal will be expanding on its exploration plans and finalizing the targets of the initial drilling program for helium in Saskatchewan, CEO Andrew Davidson said in a media release.

At market closed Thursday, Royal Helium's stock was up over 27% on the TSXV. Shares were traded 261,400 times, over three times the average daily volume of 75,311. The company has a C$5 million market capitalization.