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WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE
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NEWS RELEASE | FEBRUARY 27, 2025 |
CASCAIS, PORTUGAL
PULSAR ANNOUNCES FINANCIAL
AND OPERATING RESULTS FOR THE FIRST QUARTER ENDED DECEMBER 31,
2024
Pulsar Helium Inc. (AIM: PLSR, TSXV:
PLSR, OTCQB: PSRHF) ("Pulsar" or the "Company"), the helium project
development company, is pleased to announce its financial and
operating results for the three months ended December 31, 2024 (the
"Period").
Selected financial and operational
information is outlined below and should be read in conjunction
with the Company's unaudited consolidated financial statements and
related management's discussion and analysis (the "MD&A") for the Period, which are
available on the Company's website at www.pulsarhelium.com and at
the following links:
•
Financial Statements: http://www.rns-pdf.londonstockexchange.com/rns/6260Y_1-2025-2-27.pdf
•
MD&A: http://www.rns-pdf.londonstockexchange.com/rns/6260Y_2-2025-2-27.pdf
All figures are in US dollars
("US$") unless otherwise
stated.
Operational Highlights
•
The deepening operation at the Jetstream #1 appraisal well,
reached its target depth of 5,100 feet on January 11, 2025. Initial
data supports the Company's interpreted larger helium-bearing
reservoir zone with multiple helium zones encountered throughout
the deepening operation from 2,200 feet to 5,100 feet.
•
Mud log gas levels containing up to 7.24% helium were
encountered - these are likely to be contaminated by air and
therefore it is expected uncontaminated samples, once collected,
will report a higher and truer helium concentration.
•
Results of the October 2024 Topaz 2D seismic
survey showed a continuous reflective package at the helium-bearing
interval encountered at Jetstream #1, extending 1.5km to the west
and 2km to the east of the well.
•
The Company completed a drilling operation at the Jetstream #2
appraisal well, reaching total depth of 5,638 feet (1,718 metres)
on February 1, 2025. Mud log data reported helium levels up to
3.5%, which again was contaminated with air and uncontaminated
samples, once collected, are expected to report higher and truer
levels.
•
On February 20, 2025, the Company announced that down-hole
testing equipment is scheduled to mobilise to site on February 24,
2025. The tools consist of an optical televiewer and
LithoScanner, both of which will be run on both the Jetstream #1
and #2 appraisal wells. These tests will further refine the
Company's understanding of the reservoir properties and production
potential.
•
In January 2025, the Company received the interpretation of a
passive seismic survey conducted at the Kap Tobin prospect within
the Tunu Project, Greenland.
Financial Highlights
•
On October 18, 2024, the Company's common
shares commenced trading (the "Admission") on the AIM market of the
London Stock Exchange plc ("AIM") under the symbol PLSR.
•
Concurrent with Admission, the Company completed
of a total gross funding of £5 million which included the £1.125
million cornerstone investment completed in August 2024.
•
On December 30, 2024, the Company announced that it is
arranging a brokered private placement of up to 19,736,842 common
shares of the Company to select US based investors at a price of
$0.38 per common share to raise up to $7.5 million.
•
On January 9, 2025, the Company closed the
first tranche of the private placement raising $2 million through
the issuance of 5,263,160 common shares at a purchase price of
$0.38 per common share. The first tranche includes participation
from US institutional investors, including University Bancorp, Inc.
which now holds 4.99% of the issued and outstanding common shares
of the Company.
•
Net proceeds raised from the second tranche of the private
placement will, once closed, increase the Company's working capital
base, and enable the Company to accelerate its strategic plan for
the exploration and development of the Topaz project, including
working towards a final investment decision (FID) for the
construction of a combined helium and CO2 production
facility.
Selected Financial Results for the Period
The loss for the three months ended
December 31, 2024, was $3,748,175 compared to $1,165,924 for the
three months ended December 31, 2023.
The significant changes between the
current period and the comparative period are discussed
below.
During the three months ended
December 31, 2024, the Company paid or accrued consulting fees of
$160,400 (2023 - $102,634) primarily to executive officers of the
Company. The Company also paid or accrued director fees of $39,150
during the three months ended December 31, 2024 (2023 - $20,000).
Increases period over period are due to increases in fees effective
June 1, 2024.
During the three months ended
December 31, 2024, the Company recorded exploration and evaluation
expenditures of $1,046,631 (2023 - $403,281) as it prepared to
deepen Jetstream #1 and drill Jetstream #2 at the Topaz project as
described above.
Marketing and promotion expenses for
the three months ended December 31, 2024 were $114,806 compared to
$314,633 for the prior period. The Company was listed for trading
on the TSX-V in August 2023 and significantly increased its
advertising and investor awareness campaign since becoming a public
company. During the current period, the Company had fewer investor
awareness campaigns in place.
During the three months ended
December 31, 2024, the Company recorded non-cash share-based
compensation of $183,493 (2023 - $Nil) on performance share units
vested during the period.
As described above, the Company's
common shares commenced trading on the AIM market of the London
Stock Exchange plc on October 18, 2024. During the three months
ended December 31, 2024, the Company incurred listing fees of
$376,627 towards this transaction.
Share purchase warrants issued in
connection with unit offerings are recorded as warrant liabilities
as the currency denomination of the exercise price is different
from the functional currency of the Company. During the three
months ended December 31, 2024, the Company recorded a non-cash
revaluation loss of warrant liability of $1,430,571 (2023 -
$172,606).
Outlook
• The deepening
of Jetstream #1 is a pivotal step in advancing Pulsar's strategy to
commercialise its helium discovery in the US.
• Reservoir
data from Jetstream #2 including porosity, permeability and well
connectivity will be utilised in the next iteration of
resource estimation, production modelling, and further appraisal
well planning.
•
Down-hole wireline logs will be collected, and an optical
televiewer run at both Jetstream #1 and #2. Flow testing and
pressure build-up monitoring are planned for both wells in March
2025 following a post-drill stabilisation period.
Thomas Abraham-James, President & CEO of Pulsar,
commented: "We are delighted to have
completed the successful deepening of Jetstream #1 and the spudding
and completion of Jetstream #2 early this year. The multiple helium
zones encountered in Jetstream #1 reported up to 7.24% helium that
were diluted by air. Jetstream #2 successfully penetrated the
entire interpreted helium-bearing interval, and beyond. Mud log gas
levels containing up to 3.5% helium (diluted by atmospheric air)
were encountered during drilling. Pulsar management is encouraged
by these results which support our belief in Topaz being a material
commercial helium discovery.
We
look forward to completing the additional down-hole data gathering
and pressure build-up monitoring planned for March 2025. All these
data will provide information for the next iteration of resource
estimating, production modelling, and further appraisal well
planning.
In
October 2024, Pulsar dual listed on the AIM market of the London
Stock Exchange, simultaneously raising £5 million, including a
£1.125 million pre-AIM listing investment. This marked an exciting
step for the Company, which has enabled UK investors to join Pulsar
on its journey aiming to become a key supplier of helium, helping
to address the global supply gap.
I
look forward to sharing the data that we collect in the subsequent
operations, and revealing how it informs future developments and
the understanding of our project."
On behalf Pulsar Helium
Inc.
"Thomas Abraham-James"
President, CEO and
Director
Further Information:
Pulsar Helium Inc.
connect@pulsarhelium.com
+ 1 (218) 203-5301
(USA/Canada)
+44 (0) 2033 55 9889 (United
Kingdom)
https://pulsarhelium.com
https://ca.linkedin.com/company/pulsar-helium-inc.
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.
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.
Qualified Person Signoff
In accordance with the AIM Note for
Mining and Oil and Gas Companies, the Company discloses that Thomas
Abraham-James, President, CEO and Director of the Company has
reviewed the technical information contained herein. Mr.
Abraham-James has approximately 20 years in the mineral exploration
industry, is a Chartered Professional Fellow of the Australasian
Institute of Mining and Metallurgy (FAusIMM CP (Geo)), a Fellow of
the Society of Economic Geologists and a Fellow of the Geological
Society of London.
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
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 potential impact of deepening Jetstream #1
and the potential impact of such deepening on the next iteration of
the resource estimate; the potential impact of the results of
Jetstream #2; 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 Final Prospectus dated
July 31, 2023 filed on the Company's profile on www.sedarplus.ca.
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 and
interview are expressly qualified in their entirety by this
cautionary statement.
