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(Sharecast News) - Pulsar Helium announced on Friday that it has raised gross proceeds of 7.4m through an accelerated bookbuild placing, as it advanced development at its US helium projects.
The AIM-traded company issued 9,191,175 new common shares at 80p each, equivalent to around $10m or CAD 13.7m in gross proceeds.
OAK Securities, a trading name of Merlin Partners, acted as exclusive bookrunner and placement agent.
"We're very pleased to have successfully completed this fundraising and to welcome our new shareholders and institutional investors to Pulsar Helium," said president and chief executive Thomas Abraham-James.
"We chose to conduct the raise in the UK through an accelerated bookbuild managed by OAK Securities and we believe the level of support is a strong endorsement of both our team and the quality of our assets."
He added that the proceeds "will enable us to accelerate development at our Topaz Project in the USA targeting helium, helium-3 and carbon dioxide, while also commencing initial survey work at our Falcon Project in Michigan."
Net proceeds would primarily be directed towards the Topaz project in Minnesota, where Pulsar said it planned to undertake extended well testing and reservoir evaluation, carry out additional seismic surveys, update its independent resource estimate and complete a pre-feasibility study for integrated helium and carbon dioxide production.
The company said it also intended to place deposits on long-lead processing equipment for a contemplated helium recovery and carbon dioxide capture facility.
A portion of the funds would support geophysical and geochemical work at the Falcon project in Michigan.
Application was made for the placing shares to be admitted to trading on AIM, with admission expected at 0800 GMT on 27 February.
At 1310 GMT, shares in Pulsar Helium were down 12.64% at 81.9p.
Reporting by Josh White for Sharecast.com.
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