Pulsar Helium Inc (AIM:PLSR, TSX-V:PLSR, OTCQB:PSRHF) announced the signing of an agreement to acquire Quantum Hydrogen Inc, which holds rights to 59,100 acres in Minnesota west of the firm's Topaz helium project.
The agreement, currently a non-binding term sheet, would increase Pulsar’s land position in Minnesota by about 1,000%, and, Pulsar noted that the acreage is considered prospective for helium and hydrogen, and has geological similarities to Topa
"The proposed transaction is a fortuitous opportunity to obtain additional non-hydrocarbon gas leases in Minnesota, complementing Pulsar's existing portfolio," said chief executive Thomas Abraham-James.
"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."
The agreement sees Pulsar initially acquire 80% of Quantum in exchange for US$400,000 in shares, issued over five months, and gives it an option to buy the other 20% within 18 months on similar terms.
Abraham-James added: "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."