Pulsar Helium [LON:PLSR] debuted on the AIM index last Friday (18th October), opening the day at 29p. Pulsar, a Canadian-based helium exploration and development company is already listed on the Toronto Stock Exchange [TSX:PLSR], having listed in Canada last August as well as the over-the-counter venture market in the US [OTCQB:PSRHF], where it debuted in March this year. The company will maintain theses listings alongside the new AIM-market listing.
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The company’s admission follows a successful GBP3.9m fundraising on 15th October and a GBP1.125m pre-IPO cornerstone funding in August giving it GBP5m of cash to play with. Thomas Abraham-James, the company’s president and CEO said in a statement: “We are excited to announce our first day of dealings on the AIM market, a significant milestone for Pulsar that opens new avenues for growth and investment. This listing offers UK investors the opportunity to be part of Pulsar’s journey as we aim to become a strategic supplier of green helium, a resource that is increasingly vital for the technologies of today and tomorrow.”
The listing comprised a placing of 15,500,000 new common shares at a price of 25p per share.
More than party balloons
Most readers’ interaction with helium will be through party balloons and may-or-may-not have inhaled the gas to do a Mickey Mouse impression. However, helium has many industrial uses, including semiconductor manufacture; in modular reactors to transfer heat from the reactor to a steam generator; MRI scanners, where helium is used to cool copper coils to convert them into a superconducting state; leak detection, which is essential in aerospace and engineering; in spacecraft to purge gas for hydrogen systems; fibre-optics; hard drive performance and of course deep-sea diving.
Pulsar’s main focus to date has been its Topaz Project in Minnesota, where it is the first helium company to operate. It says that Topaz is one of the world’s highest content helium discoveries, with a gas flow of 14.5%. Grades of less than 0.3% are often considered economic. Topaz has excellent geology, with a clear gas flow not associated with water, which reduces the production costs substantially as the firm will not have to dewater its seam which is 2,200 feet below the ground. The company’s first exploration drills have discovered a high-pressure discovery, which indicates a significant gas find and believes that the deposit has potential for 821 million cubic feet a day. Topaz is close to the grid, with electricity being the only consumable essential for production, and the project is in a benign mining jurisdiction. The company will use funds raised to progress the Topaz discovery.
Developing a ‘world-class’ helium project
The company hopes to push its Jetstream intrusion at Topaz further this quarter by another 500 metres to appraise the depth of the helium reservoir and then drill a step-out well with a preliminary economic assessment completed by the end of the year. Abraham-James said: “Pulsar has drilled only one well, within one prospect at the Topaz project -and that well hasn’t even reached total depth yet. Topaz therefore has vast potential, and our work program aims to realise that.”
Topaz also has a potential value-add product in the form of carbon dioxide, with drilling demonstrating high content; so, the company can add fizz to your lemonade to go with your party balloons.
The company is also operating in Greenland through its Tunu Project. Being in Europe and with transshipment to Denmark, Pulsar hopes to supply Europe with helium – a mineral that is on the EU’s strategic minerals list. Tunu is a very early-stage project, and undoubtedly all the action will be in Minnesota, but with a total licence area of 2,816 square kilometres and mineral rights for everything but hydrocarbons and uranium and other radioactive minerals, Pulsar has a very interesting second project on the backburner.
Strand Hanson acted as nominated and financial adviser to the Pulsar on the IPO and OAK Securities acted as broker, having sourced the initial GBP1.125m cornerstone investment, converted into 4,500,000 new shares at issue price and then built a heavily oversubscribed book for the fundraising.
