Pulsar Helium announced it has signed a non-binding term sheet to acquire up to 100% of Quantum Hydrogen Inc. in an all-share transaction.
Quantum holds exclusive mineral rights for non-hydrocarbon gases in Minnesota (59,100 acres) located in St Louis and Itasca counties, to the west of Pulsar’s flagship Topaz project.
This will be a 1,000% increase to Pulsar’s gross acreage in Minnesota, on completion of the proposed transaction. The company believes the geology is similar to the Topaz project, where recent testing at the Jetstream #1 well confirmed strong reservoir productivity, expected to support future production.
The newly acquired acreage provides an opportunity to apply Pulsar’s extensive subsurface knowledge in a conventional gas reservoir.
Pulsar remains focused on achieving its core objective of becoming a major helium producer at Topaz, with this additional acreage being a low-cost, long-term addition intended for future exploration activities.
Thomas Abraham-James, President & CEO of Pulsar, said, “The proposed transaction is a fortuitous opportunity to obtain additional non-hydrocarbon gas leases in Minnesota, complementing Pulsar’s existing portfolio. The assets will expand our helium exploration footprint in Minnesota by approximately 1,000%, providing us with additional acreage nearby to our flagship Topaz project, with similar geology that could potentially host helium accumulations.
“It is an exciting time for the company, with the recently announced testing results for Jetstream #1, the recently completed financing, and the expansion of our acreage in Minnesota. This all-share transaction would allow us to preserve our cash for advancing Topaz, realising its production potential, while simultaneously exploring the new, but geologically familiar acreage for potential additional helium opportunities.”
The mineral rights are situated within a non-hydrocarbon-bearing sedimentary basin that overlies Archaean crystalline basement, the same helium source rock type as at the Topaz project. While Topaz represents a helium discovery within fractured basement, the newly acquired acreage provides an opportunity to apply Pulsar’s extensive subsurface knowledge in a conventional gas reservoir: helium generated in basement granites migrating into overlying sedimentary reservoirs sealed by mudstone and siltstone units.
Pulsar has developed a strong technical foundation in identifying and characterising helium migration pathways, source-proximity relationships, and structural controls through its work at Topaz. The acquisition would allow Pulsar to leverage its experience across additional acreage with similar helium generation potential. Pulsar’s board believes this represents a logical and low-risk way to expand its exploration portfolio, while remaining firmly within the Company’s core technical focus.
Pulsar has entered a non-binding agreement with Oscillateto acquire its wholly owned subsidiary, Quantum. Pulsar has 120 days to acquire 80% of the issued share capital of Quantum of $400,000, issued in five equal monthly tranches of $80,000 each of Pulsar shares Pulsar can buy the remaining 20%ofQuantumwithin18months foran additional $400,000 in Pulsar shares
