Pulsar Helium Inc. (LSE:PLSR) has signed and accepted a firm proposal with Chart Energy & Chemicals, a subsidiary of Baker Hughes, covering the staged supply of equipment for its proposed Rare Gas Hub in Minnesota.
The package is valued at US$85.5 million before additional costs and covers equipment for a commercial-scale helium purification and liquefaction plant alongside a carbon dioxide capture plant.
The proposed helium facility has a nameplate capacity of approximately 7.5 million litres of liquid helium per year, while the CO2 facility is designed to capture 300 tonnes of carbon dioxide per day.
Pulsar to Make Initial US$5.025 Million Payment
Pulsar plans to make an initial payment of US$5.025 million from its existing cash resources of US$25.2 million, subject to approval from the TSX Venture Exchange.
A second milestone payment of US$8.55 million is due by January 31, 2027. Payment of this amount would trigger procurement of long-lead equipment for the project.
The agreement includes a milestone-linked payment structure as well as provisions allowing for suspension or termination if financing or other required milestones are not achieved.
Rare Gas Hub Remains Subject to Financing and Approvals
Development of the Rare Gas Hub remains dependent on several conditions, including securing additional financing, completing engineering and engineering, procurement and construction work, and finalising a project site in Lake County, Minnesota.
Pulsar will also need to obtain the required permits and regulatory approvals before the proposed facility can proceed to operation.
The company is developing the Rare Gas Hub as processing infrastructure for its helium activities in the region.
Pulsar Helium Portfolio
Pulsar Helium is a primary helium exploration and development company with listings on AIM, the TSX Venture Exchange and the OTCQB.
Its portfolio includes the Topaz helium project in Minnesota, the Falcon project in Michigan and the Tunu project in Greenland. The company’s projects are focused on primary helium resources that are not associated with hydrocarbon production.
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