Royal Helium Ltd. (TSXV:RHL) and its two subsidiaries Royal Helium Exploration Limited and Imperial Helium Corp., companies in the business of gas extraction and exploration, with a focus on mining helium for purification and the exploration of prospective helium rich lands in Saskatchewan and Alberta, filed NOIs on January 17.

In October 2023, Royal Helium, through its subsidiary Imperial Helium, commissioned a state-of-the-art helium purification facility in Steveville, Alberta. However, the commissioning was ultimately a failure despite the companies spending millions in labour and overhead. The cost overruns resulted in a liquidity crisis.

Since September 2024, the companies have been working cooperatively with their fulcrum secured creditors, CWB and BDC (each listed as being owed approximately $8.7 million), to address their liquidity issues. However, in early January, CWB and BDC delivered notices of intention to enforce their security under the BIA, ultimately leading to the NOI filings.

Grant Thornton is the proposal trustee.

Counsel is Reconstruct for the companies.