REG - Pulsar Helium Inc. - Pulsar Helium Announces Brokered Private Placement

Pulsar HeliumAnnouncement

31/12/2024 07:00

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RNS Number : 6634R  Pulsar Helium Inc.  31 December 2024

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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 (mailto: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 (mailto:info@OAK-securities.com)

+44 203 973 3678

BlytheRay Ltd

(Financial PR)

Megan Ray / Said Izagaren

+44 207 138 3204
 

pulsarhelium@blytheray.com (mailto: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 (https://pulsarhelium.com)

X https://x.com/pulsarhelium (https://x.com/pulsarhelium)

LinkedIn https://ca.linkedin.com/company/pulsar-helium-inc
(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
(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.

 

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