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Pulsar Helium Inc., has raised millions to support development of its helium project near Babbitt.
The Vancouver, B.C.-based helium developer said Tuesday it has raised $6.5 million through a placing of new common shares with new and existing investors.
Pulsar Helium is also publishing an admission document on the AIM Market of the London Stock Exchange, the company said in a news release.
“We are extremely pleased with the outcome of the fundraising and our admission to AIM, which represents a significant milestone for the company,” Thomas Abraham-James, Pulsar Helium president and chief executive officer said in the release. “The fundraising itself was oversubscribed by more than 50 percent, reflecting the strong support and confidence from new and existing shareholders. As the funds raised are sufficient for our nearterm work programmes, we decided not to accept the additional funding offered as we felt we didn’t want to incur any further dilution ahead of what we expect to be an exciting period for the company.”
Pulsar Helium in December struck helium in a single 2,200 foot-deep well drilled near Babbitt.
Tests confirmed a high concentration of helium.
The well is also producing CO2 as a byproduct.
The well is about 50 feet away from a hole drilled in 2011 by Duluth Metals which struck helium while exploring for copper, nickel, cobalt, and platinum group metals.
Helium found within the Duluth Metals drill hole led Pulsar Helium to drill its well near the site.
The Pulsar Helium well is on private land. Seismic testing that Pulsar Helium has conducted near the site of its well shows promise of a larger helium reserve, Pulsar Helium has said.
Additional drilling at the site will take place this quarter.
Earlier this month, Pulsar Helium announced it has acquired mineral rights on an additional 2,092 acres of private land at the site.
The acquisition increases Pulsar Helium’s total private mineral rights at the site to 4,181 net acres, according to the company. The Babbitt project is called the Topaz Project.
Abraham-James said the strong sale of common shares reflects the project’s potential.
“ Additionally, this result is a testament to the potential of Pulsar Helium and its Topaz Project in particular,” Abraham- James said. “The Topaz Project is a primary helium discovery, in a new helium state, which flowed concentrations regarded as very high by global standards, and far exceeding the generally accepted economic threshold for viability. The funds raised during this process will be instrumental in enabling the company to accelerate its exploration and development efforts at Topaz, delivering further value to stakeholders.”
Pulsar Helium hopes to develop a commercial helium operation from the project.
It would be Minnesota’s first helium project.
The project sits within the Duluth Complex, the world’s largest undeveloped reserve of copper, nickel, cobalt, and platinum group metals.
Helium is critical to a variety of industries, Pulsar Helium says.
“Helium, whilst not always wellknown, is vital to multiple technology driven industries, playing an important role in semiconductor manufacturing, high-quality fiber- optic cable production, and in MRI scanners,” Pulsar Helium said in the news release. “It also improves data storage efficiency in hard drives and is used by the space industry to launch rockets.”
Pulsar Helium said it looks forward to updating shareholders on continued progress of the company, the Topaz Project and its Tunu Project in Greenland.
Pulsar Helium continues to be listed on the TSX Venture Exchange in Canada and the OTCQB Venture Market in the United States, according to the company.
