Pulsar Helium Secures Project Finance Facility and Completes Private Placement

Overview of Recent Developments

Pulsar Helium Inc. is enhancing its operational capabilities at its Topaz helium project in Minnesota through a recently secured Project Finance facility of US$4 million from University Bancorp, Inc. This strategic financing aims to support immediate operational needs without necessitating further equity dilution for shareholders.

Terms of the Financing

The Project Finance facility is structured as a line of credit, guaranteed by Pulsar and secured by shares of its wholly owned subsidiary, Keewaydin Resources, Inc. The facility will incur a 12% annual interest rate on drawn amounts and is set to mature on March 31, 2026. Additionally, a 2% utilization fee will apply to any drawn balance, refundable at maturity.

Impending Operational Activities

With promising drilling outcomes at Topaz, the company plans to utilize the new funds for essential operational tasks. Flow testing of the Jetstream wells is scheduled to commence around March 29, 2025, with each well being evaluated over a two-week period, alongside the collection of uncontaminated gas samples for analysis.

Completion of Private Placement

Pulsar has successfully concluded the second and final tranche of a brokered private placement, raising an additional US$427,498 through the issuance of 1,124,994 common shares at a price of US$0.38. This placement has culminated in gross proceeds of US$2,427,498 from both tranches, thereby strengthening the company’s overall financial position.

Future Outlook

The developments at the Topaz project are crucial as Pulsar aims to meet the growing global demand for helium. Initial results from the drilling operations have shown significant helium concentrations that exceed the economic threshold, indicating the project's potential for successful helium production.

Key Takeaways

Pulsar Helium has secured a US$4 million Project Finance facility to support its Topaz helium project in Minnesota.

The facility has a maturity date of March 31, 2026, with a 12% interest rate and a utilization fee of 2% on drawn amounts.

The company completed its final tranche of a private placement, raising US$427,498 to enhance liquidity and support operational activities.

Flow testing on the Jetstream wells is anticipated to start shortly, accompanied by comprehensive gas sample analysis.

Pulsar aims to address increasing global helium demand as it moves closer to production at the Topaz project.