Pulsar Helium Inc. (TSX-V: PLSR): Equity raise to progress Topaz
• Pulsar has raised US$10 mm of new equity at a price of £0.80 per share, a key milestone that closes the funding gap required to advance the Topaz project towards FID and ultimately into production.• The equity proceeds will fund: (1) an extended well‑testing programme at Topaz (seven wells drilled to date), (2) seismic acquisition and interpretation, (3) a pre‑feasibility study for integrated helium and CO₂ production, (4) further land consolidation around Topaz, and (5) procurement of long‑lead processing equipment.
• In addition, approximately US$1 mm will be allocated to geophysical and geochemical surveys at the Falcon project in Michigan’s Upper Peninsula.
• Near‑term catalysts include the results of the extended well‑testing programme and the subsequent resource update. Given the higher‑than‑expected pressures encountered during appraisal drilling, the potential resource base could increase meaningfully. Pulsar has also commenced drilling Jetstream #7, targeting a planned TD of 3,000 ft with optional deepening to 5,000 ft. The well lies 2.2 miles northwest of Jetstream #1, representing a significant step‑out appraisal.
• A final investment decision at Topaz could be taken by YE26, enabling the booking of helium reserves.
• The equity financing materially reduces funding risk. While we have not revised our resource estimates ahead of the CPR, recent drilling results support a higher likelihood of development. We therefore increase the probability of success for the prospective resources from 38% to 45%. Our target price rises from £0.90 to £1.10 per share, reflecting the updated ReNAV and the enlarged share count (additional 9.2 mm shares).
• Our unrisked NAV for Pulsar, based on Topaz alone, stands at £2.34 per share. Any success in Michigan or Greenland would provide further upside.
Valuation
Our new ReNAV is £1.08 per share. This valuation does not include any contribution from ³He, which represents material additional upside potential.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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