Pulsar Helium Secures $4M for Topaz Project

Pulsar Helium Inc. has announced a significant milestone in its quest to become a leading helium supplier in the United States. The company's Minnesota subsidiary, Keewaydin Resources, has secured a US$4 million project finance facility from University Bancorp. This funding will be instrumental in advancing the Topaz Helium project, which has shown promising results with helium concentrations reaching up to 14.5%.

The facility, guaranteed by Pulsar and secured by Keewaydin's shares and assets, will mature on March 31, 2026. It carries a 12% annual interest rate on drawn amounts and a 2% utilization fee, which is reimbursable at maturity. The facility remains subject to approval from the TSX Venture Exchange.



Operational Funding and Strategic Goals

The US$4 million project finance facility from University Bancorp significantly impacts Pulsar Helium's operational capabilities and strategic goals for the Topaz Helium project. The funding will directly support critical activities such as the imminent flow testing of the Jetstream #1 and #2 wells, which are scheduled to commence on March 29, 2025. These tests are crucial for assessing well productivity and collecting uncontaminated gas samples for analysis.

The facility also enables Pulsar to continue drilling and resource delineation. The Jetstream #1 well was deepened to 5,100 feet, encountering helium concentrations far above the economic threshold. This funding allows Pulsar to further explore the resource potential and validate the project's commercial viability.

Avoiding Equity Dilution

One of the strategic benefits of the facility is that it allows Pulsar to avoid raising additional equity capital, which would dilute existing shareholders. The CEO, Thomas Abraham-James, emphasized that this funding provides the working capital required to advance the project without additional shareholder dilution. This is particularly important given the company's recent private placement, which raised US$2.4 million across two tranches by issuing 6.388 million new shares.

Advancing the Path to Production

The facility directly supports Pulsar's goal of reaching a final investment decision (FID) on initial production within the next 24 months. The flow testing results and resource delineation from the funded activities will inform engineering and economic studies with partners like Chart Industries. This aligns with Pulsar's strategic objective to capitalize on the U.S. helium market's declining domestic supply and growing tech-driven demand.

Financial Flexibility and Risk Mitigation

The facility is secured by Keewaydin's shares and assets and guaranteed by Pulsar, reducing lender risk and enhancing Pulsar's credibility. The 12% interest rate and 2% utilization fee provide clear terms for managing costs. However, the high interest rate and tight repayment timeline pose significant financial risks. Success hinges on rapid progress in flow testing, resource validation, and securing long-term financing or revenue streams before the 2026 maturity.

Conclusion

The US$4 million facility from University Bancorp provides Pulsar Helium with the necessary funding to advance the Topaz Helium project while avoiding equity dilution. The high interest rate and tight repayment timeline pose risks, but the project's strong technical merits and strategic importance to the U.S. helium market make it a compelling investment. Pulsar's success will depend on its ability to rapidly progress through critical milestones and secure long-term financing or revenue streams.