Pulsar Helium Receives US$12.5M Financing Interest for Topaz Project

• University Bank issued non-binding expression of interest for US$12.5 million project financing for Topaz helium processing plant construction
• Existing US$4 million credit facility maturity extended from March 2026 to November 2026 with 0.75% extension fee
• Proposed financing terms include 12% annual interest, 24-month interest-only period, then five-year amortisation with seven-year final maturity
• University Bancorp holds approximately 4.9% of Pulsar's issued share capital
• Four conditions precedent required before financing closure, including independent reserve confirmation and permit approvals

Pulsar Helium Inc. (AIM:PLSR) operates a portfolio consisting of its flagship Topaz helium project in Minnesota, USA, and the Tunu helium project in Greenland. The company describes itself as the first mover in both locations with primary helium occurrences not associated with hydrocarbon production identified at each project, operating as a helium project development business focused on these two assets.

US$12.5 Million Project Financing Expression

University Bank, wholly owned by University Bancorp Inc., provided the non-binding financing expression for constructing a helium processing plant at the Topaz project. The proposed facility would bear 12% annual interest with interest-only payments for the first 24 months, followed by full amortisation over five years.

The financing includes a 2% fee earned at closing and payable at the end of the interest-only period. Final maturity would occur after seven years from the closing date. The proposal remains subject to negotiation of definitive documentation and satisfaction of specific conditions precedent.

University Bancorp currently holds approximately 4.9% of Pulsar's issued share capital, making it both a potential lender and existing equity holder. CEO Thomas Abraham-James stated the financing interest "marks another important step towards delivering the Topaz project into production."

Topaz Project Requirements

The financing facility includes four conditions precedent that must be satisfied before closing. An independent resource estimator must issue a final report confirming sufficient proven helium reserves at Topaz to support helium plant construction.

Pulsar must obtain all permits and legal title required for production at the Topaz project. The company must also demonstrate availability of sufficient working capital to fund remaining plant construction costs and operations through completion plus six months thereafter.

The final condition requires approval by University Bank's Board of Directors. The proposed financing remains non-binding and subject to negotiation of definitive agreements, satisfaction of all conditions, and customary regulatory approvals.

Credit Facility Extension

University Bank extended the maturity date of Pulsar's existing US$4 million project financing facility from March 31, 2026, to November 30, 2026. The facility is provided to Pulsar's subsidiary Keewaydin Resources Inc.

The extension includes a 0.75% fee on the current drawn amount of US$2.5 million, totalling US$18,750 payable at maturity. The drawn amount represents the portion of the facility currently utilised by the company.

The facility line of credit serves as project financing for Pulsar's operations. The eight-month extension provides additional time before the facility's maturity date while maintaining existing terms and conditions.

Next Steps

Pulsar must satisfy the four conditions precedent to proceed with the proposed US$12.5 million financing facility. The independent resource estimation will provide third-party validation of helium reserves at the Topaz project. Obtaining necessary permits and regulatory approvals represents another requirement for facility closure.

The company must also demonstrate adequate working capital for plant construction completion and initial operations. Meeting these conditions would enable negotiation of definitive financing agreements and potential facility closure, subject to University Bank board approval and regulatory requirements.

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