Pulsar Helium gets non-binding project financing proposal

(Sharecast News) - Pulsar Helium said in an update on Friday that it has received a non-binding expression of interest from University Bank in Michigan for up to $12.5m in project financing to build a helium processing plant at its wholly-owned Topaz project in Minnesota.

University Bancorp, which owns about 4.9% of Pulsar's issued share capital, had also extended the maturity of an existing $4m credit facility to November 2026.

The AIM-traded firm said the proposed financing, which remains subject to due diligence, definitive agreements and regulatory approvals, would carry 12% annual interest, with interest-only payments for the first two years, followed by full amortisation over five years and final maturity after seven years.

A 2% fee would be payable at the end of the interest-only period.

Conditions for closing included confirmation of sufficient proven helium reserves by an independent resource estimator, receipt of all permits and legal title for production, and securing adequate working capital to complete construction and fund initial operations.

"We are extremely grateful for University Bank's continued support and confidence in Pulsar," said president and chief executive Thomas Abraham-James.

"Their financing interest of lending Pulsar up to $12.5m for the construction of a helium processing plant marks another important step towards delivering the Topaz project into production.

"This potential funding, alongside the extension of our existing line of credit, strengthens our ability to move forward decisively with construction planning and execution."

At 1223 BST, shares in Pulsar Helium were down 1.55% at 25.2p.

Reporting by Josh White for Sharecast.com.