Source: Sharecast
Under the terms of the agreement, Pulsar said it would acquire an initial 80% of Quantum for $0.4m in new shares, issued in five equal monthly tranches following regulatory approval from the TSX Venture Exchange.
The AIM-traded firm said the number of shares in each tranche would be based on Pulsar’s 30-day volume-weighted average price.
It said it also holds an option to acquire the remaining 20% within 18 months for an additional $0.4m in Pulsar shares, under the same pricing mechanism.
Quantum holds exclusive mineral rights over 59,100 acres in St Louis and Itasca Counties, Minnesota - to the west of Pulsar’s flagship Topaz helium project.
The deal represented a roughly 1,000% increase in Pulsar’s gross acreage in the state.
It said the assets are prospective for helium and hydrogen and lie within geological settings analogous to Topaz, where recent testing at the Jetstream #1 well confirmed strong reservoir productivity and high helium concentrations.
Pulsar said the acquisition complemented its strategy to become a major helium producer at Topaz, adding low-cost, long-term acreage suitable for future exploration.
Quantum’s lease option covering the assets was currently valued at about $0.3m.
The firm noted that Pulsar director Neil Herbert is a minority shareholder in Oscillate and did not participate in board deliberations or voting on the transaction.
Pulsar said the assets sit within a sedimentary basin overlying Archaean crystalline basement - the same helium source rock type as at Topaz - with gas expected to migrate from granitic basement into sealed sedimentary reservoirs.
The company said it planned to apply its subsurface expertise from Topaz to evaluate the new acreage, which it described as a low-risk expansion within its core technical focus.
Pulsar’s chief executive Thomas Abraham-James said the deal reinforced the company’s position as a first mover in primary helium exploration, with Quantum’s acreage offering additional scale and geological continuity alongside the Topaz project, where Pulsar has already achieved one of the highest naturally occurring helium-3 concentrations recorded in a terrestrial reservoir.
At 1550 GMT, shares in Pulsar Helium were down 7.95% at 40.5p.
Reporting by Josh White for Sharecast.com.
