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NEWS RELEASE | DECEMBER 31, 2024 |
CASCAIS, PORTUGAL
PULSAR HELIUM ANNOUNCES
BROKERED PRIVATE PLACEMENT
Pulsar Helium Inc. (AIM: PLSR, TSXV:
PLSR, OTCQB: PSRHF) ("Pulsar" or the "Company"), a leading helium project
development company, is pleased to announce that it is arranging a
brokered private placement of up to 19,736,842 common shares of the
Company (the "Offered
Shares" and each common share of the Company, a
"Common Share") to select
US based investors at a price of US$0.38 (equivalent to
approximately C$0.55 / GBP£0.30) per share to raise up to US$7.5
million (the "Private
Placement").
Pulsar has appointed University Bank
, a Michigan banking corporation, to act as the Company's exclusive
placement agent (the "Placement
Agent") for the Private Placement pursuant to a placement
agent agreement. The Placement Agent will be paid a cash fee
in an amount equal to six percent (6.0%) of the aggregate purchase
price of the Offered Shares sold in the Private Placement to
purchasers in the United States of America.
Contingent on closing the Private
Placement, University Bancorp., Inc. a financial holding company
that owns 100% of University Bank will provide a line of
credit for up to US$4.0 million to one of the Company's major
shareholders, ABCrescent Coöperatief U.A. ("ABC"), to afford ABC the ability to
exercise its 15.5 million share purchase warrants that each entitle
ABC to purchase an additional Common Share at an exercise price of
C$0.36, should it choose to exercise. ABC's warrants are subject to
a lock-in arrangement that restricts the sale of any such warrants
or underlying Common Shares until October 18, 2025.
The net proceeds of the Private
Placement shall further strengthen the Company's working capital
position, and the Company will primarily use such funds to
accelerate the Company's strategic plan for the exploration and
development at Pulsar's Topaz project in Minnesota and to reach a
final investment decision (FID) for the construction of a combined
helium and CO2 production facility. This including the
drilling of a step-out well as set out below.
Thomas Abraham-James, President & CEO of Pulsar, commented
on the Private Placement:
"My colleagues and I are delighted to have such strong
indications of support from US based institutional investors. They
too share our vision for Pulsar to become a significant player in
the US domestic helium market, a commodity that is critical to so
many US industries. The private placement, assuming its completion
in full, will provide certainty for the Company to be fully funded
for its upcoming work programs and the line of credit for the
exercise of our major shareholder's warrants provides further
potential funding sources. Our objective is now to reach final
investment decision on the construction of Minnesota's first ever
helium production facility at Pulsar's Topaz
project."
The Private Placement is subject to
receipt of all necessary regulatory approvals, including the
approval of the TSX Venture Exchange. The securities being issued
pursuant to the Private Placement will be subject to a four month
hold period in accordance with applicable Canadian securities
law.
Operational Update
Drilling for the deepening of the
Jetstream #1 appraisal well is set to commence later this week at
its flagship Topaz Project in Minnesota ("Topaz" or the "Project"). The drill rig, ancillary
equipment and personnel are on site, the drill crew having returned
today after an agreed Christmas break (at no cost to the Company).
As part of this crucial phase, Pulsar plans to deepen the Jetstream
#1 appraisal well by a minimum of 1,640 feet (500
metres).
Highlights
•
Site Preparation: The Jetstream #1 drill pad is fully prepared and
permitted for the upcoming drilling operations.
•
Equipment and Personnel: The drill rig and ancillary equipment are
on-site, with the drill crew arriving today following the Christmas
holiday break.
•
Drilling Timeline: Drilling is now set to commence on or around
January 3, 2025, and take approximately one week to reach total
depth.
Strategic Significance
The Jetstream #1 appraisal well
previously reached total depth (TD) of 2,200 feet (671 metres) on
the 27th of February 2024, identifying top-tier helium
concentrations of up to 14.5%, well above the 0.3% widely accepted
economic threshold, and CO2 concentrations exceeding 70% - with the
latter expected to further contribute to the project economics. The
deepening of Jetstream #1 is a pivotal step in advancing Pulsar's
strategy to address the increasing global demand for helium as the
Company moves another step closer to production. The deepening of
Jetstream #1 will target the full height of the helium reservoir,
guided by insights from recently acquired geophysical data,
previous drilling data, and onsite testing.
About the Topaz Project
The Topaz project is located in
northern Minnesota, USA where Pulsar is the first mover and holds
exclusive leases. The Jetstream #1 appraisal well previously
reached total depth (TD) of 2,200 feet (671 metres) on the 27th of
February 2024, identifying top-tier helium concentrations of up to
14.5%, well above the 0.3% widely accepted economic threshold, and
CO2 concentrations exceeding 70% - with the latter expected to
further contribute to the project economics. The deepening of
Jetstream #1 is a pivotal step in advancing Pulsar's strategy to
address the increasing global demand for helium as the Company
moves another step closer to production.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
On behalf Pulsar Helium
Inc.
"Thomas Abraham-James"
President, CEO and
Director
Further Information:
Pulsar Helium Inc.
connect@pulsarhelium.com
+ 1 (218) 203-5301
+44 (0) 2033 55 9889
Strand Hanson Limited
(Nominated & Financial Adviser,
and Joint Broker)
Ritchie Balmer / Rob Patrick /
Richard Johnson
+44 (0) 207 409 3494
OAK
Securities*
(Joint Broker)
Jerry Keen (Corporate Broking) /
Henry Clarke (Institutional Sales) / Dillon Anadkat (Corporate
Advisory)
info@OAK-securities.com
+44 203 973 3678
BlytheRay Ltd
(Financial PR)
Megan Ray / Said Izagaren
+44 207 138 3204
pulsarhelium@blytheray.com
*OAK Securities is the trading name of Merlin Partners LLP, a
firm incorporated in the United Kingdom and regulated by the UK
Financial Conduct Authority.
About Pulsar Helium Inc.
Pulsar Helium Inc. is a publicly
traded company listed on the AIM market of the London Stock
Exchange and the TSX Venture Exchange with the ticker PLSR, as well
as on the OTCQB with the ticker PSRHF. Pulsar's portfolio consists
of its flagship Topaz helium project in Minnesota, USA, and the
Tunu helium project in Greenland. Pulsar is the first mover in both
locations with primary helium occurrences not associated with the
production of hydrocarbons identified at each.
For further information
visit:
Website https://pulsarhelium.com
X https://x.com/pulsarhelium
LinkedIn https://ca.linkedin.com/company/pulsar-helium-inc.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
This news release and the interview
contains forward-looking information within the meaning of Canadian
securities legislation (collectively, "forward-looking statements")
that relate to the Company's current expectations and views of
future events. Any statements that express, or involve discussions
as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance (often, but not always, through the
use of words or phrases such as "will likely result", "are expected
to", "expects", "will continue", "is anticipated", "anticipates",
"believes", "estimated", "intends", "plans", "forecast",
"projection", "strategy", "objective" and "outlook") are not
historical facts and may be forward-looking statements.
Forward-looking statements herein include, but are not limited to,
statements relating to the completion of the Private Placement, the
potential impact of deepening Jetstream #1 and the potential impact
of such deepening on the next iteration of the resource estimate;
the results of drilling, results of an updated independent resource
estimate for helium and CO2 at Topaz; the potential of CO2 as a
valuable by-product of the Company's future helium production; the
estimated Geological Chance of Success for Prospective Resources
and the Chance of Commerciality of Topaz; the potential impact of
deepening Jetstream #1 and the potential impact of such deepening
on the next iteration of the resource estimate; the expected timing
to commence drilling; and the potential for future wells.
Forward-looking statements may involve estimates and are based upon
assumptions made by management of the Company, including, but not
limited to, the Company's capital cost estimates, management's
expectations regarding the availability of capital to fund the
Company's future capital and operating requirements and the ability
to obtain all requisite regulatory approvals.
No reserves have been assigned in
connection with the Company's property interests to date, given
their early stage of development. The future value of the Company
is therefore dependent on the success or otherwise of its
activities, which are principally directed toward the future
exploration, appraisal and development of its assets, and potential
acquisition of property interests in the future. Un-risked
Contingent and Prospective Helium Volumes have been defined at the
Topaz Project. However, estimating helium volumes is subject to
significant uncertainties associated with technical data and the
interpretation of that data, future commodity prices, and
development and operating costs. There can be no guarantee that the
Company will successfully convert its helium volume to reserves and
produce that estimated volume. Estimates may alter significantly or
become more uncertain when new information becomes available due to
for example, additional drilling or production tests over the life
of field. As estimates change, development and production plans may
also vary. Downward revision of helium volume estimates may
adversely affect the Company's operational or financial
performance.
Helium volume estimates are
expressions of judgement based on knowledge, experience and
industry practice. These estimates are imprecise and depend to some
extent on interpretations, which may ultimately prove to be
inaccurate and require adjustment or, even if valid when originally
calculated, may alter significantly when new information or
techniques become available. As further information becomes
available through additional drilling and analysis the estimates
are likely to change. Any adjustments to volume could affect the
Company's exploration and development plans which may, in turn,
affect the Company's performance. The process of estimating helium
resources is complex and requires significant decisions and
assumptions to be made in evaluating the reliability of available
geological, geophysical, engineering, and economic date for each
property. Different engineers may make different estimates of
resources, cash flows, or other variables based on the same
available data.
Forward-looking statements are
subject to a number of risks and uncertainties, many of which are
beyond the Company's control, which could cause actual results and
events to differ materially from those that are disclosed in or
implied by such forward- looking statements. Such risks and
uncertainties include, but are not limited to, that Pulsar may be
unsuccessful in drilling commercially productive wells; the
uncertainty of resource estimation; operational risks in conducting
exploration, including that drill costs may be higher than
estimates and the potential for delays in the commencement of
drilling; commodity prices; health, safety and environmental
factors; and other factors set forth above as well as under
"Cautionary Note Regarding Forward Looking Statements and Market
and Industry Data" and "Risk Factors" in the AIM Admission Document
published on October 14, 2024, found on the Company's web site
at https://pulsarhelium.com/investors/aim-rule-26/default.aspx.
Forward-looking statements contained
in this news release are as of the date of this news release, and
the Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. New
factors emerge from time to time, and it is not possible for the
Company to predict all of them or assess the impact of each such
factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward-looking statement. No assurance can be
given that the forward-looking statements herein will prove to be
correct and, accordingly, investors should not place undue reliance
on forward-looking statements. Any forward-looking statements
contained in this news release are expressly qualified in their
entirety by this cautionary statement.