Pulsar Helium Secures Funding for Topaz Project Development
Why we think this is good
The RNS contains several positive developments that could have a favorable impact on the company's share price and valuation in the short to medium term. The brokered private placement will strengthen the company's working capital position, and the line of credit for the major shareholder to exercise its warrants will provide additional funding. The company's plans to accelerate the exploration and development of the Topaz project, including the upcoming drilling program, are also positive steps forward.
Key Points
- Brokered private placement of up to 19.7 million common shares at US$0.38 per share to raise up to US$7.5 million
- Line of credit of up to US$4 million for major shareholder to exercise 15.5 million share purchase warrants
- Net proceeds to be used for exploration and development of Topaz project, including drilling of step-out well
- Drilling for deepening of Jetstream #1 appraisal well at Topaz project to commence in early January 2025
Summary
Pulsar Helium Inc. has announced a brokered private placement of up to 19.7 million common shares at US$0.38 per share to raise up to US$7.5 million. The company has also secured a line of credit of up to US$4 million for one of its major shareholders to exercise its 15.5 million share purchase warrants. The net proceeds from the private placement will be used to accelerate the exploration and development of the company's Topaz project in Minnesota, including the drilling of a step-out well, and to reach a final investment decision for the construction of a combined helium and CO2 production facility. The company also provided an operational update, stating that drilling for the deepening of the Jetstream #1 appraisal well at the Topaz project is set to commence in early January 2025.