The Canadian government is putting cash into a publicly traded helium company. But, why?

‍What’s happening:‍

• Royal Helium (TSXV: RHC) has received $3M CAD in funding from the government of Canada
  
• The new funding comes from Prairies Economic Development Canada through their Aerospace Regional Recovery Initiative
  

By the numbers:‍

• Royal Helium has 1,000,000 acres of land and leases in Saskatchewan for helium exploration and production
  
• To date, Royal Helium has begun drilling at 10 of their different wells
  

Why it matters:‍

• The new funding comes after the Canadian government previously identified helium as a critical mineral
  

Going deeper:‍

• Helium’s primary use historically has been in healthcare, but that has recently been changing due to its need for semiconductor manufacturing, microchip manufacturing and aerospace technologies
  
• Aerospace companies need helium for both the production of rockets and supporting launches into orbit
  
• Royal Helium has a long term offtake deal with a North American space launch company to provide them with purified helium supply
  

The intrigue:‍

• Royal Helium actively earns carbon credits from their operations at their Steveville helium plant based in Alberta

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