Pulsar Helium (TSXV: PLSR) signs all-share deal to acquire 6,742 acres of Michigan helium exploration rights

Pulsar Helium Inc. has signalled a strategic push into the Upper Midwest helium space by signing a non-binding term sheet to acquire 100 percent of Hybrid Hydrogen Inc.’s lease interests in Michigan’s Upper Peninsula. The deal, valued at approximately US $80,000 and payable entirely via equity, lets Pulsar take on mineral rights over roughly 6,742 acres for non-hydrocarbon gases, a move that preserves cash for its flagship Topaz helium project in Minnesota. This quietly ambitious acquisition marks Pulsar’s first entry into Michigan, anchoring an expansion drive in geologically favourable yet under-explored terrain.

Why is Pulsar Helium targeting Michigan now?

Pulsar’s decision to pursue Michigan stems from its belief that the geology of the region mirrors the basement-sourced helium system it is proving at its Topaz project. At Topaz, helium generation is attributed to uranium- and thorium-rich Archaean basement rocks, with migration through faults and into overlying sedimentary traps. The Michigan acreage lies within a sedimentary basin underlain by crystalline basement rock—a setting that offers a familiar structural template. By extending its platform into Michigan’s Upper Peninsula, the company leverages existing in-house expertise while mitigating jurisdictional risk because Michigan enjoys an established gas regulatory regime that is now being adapted for helium exploration. In effect, Pulsar is replicating its Minnesota blueprint in a second U.S. state. The low-cash nature of the all‐share deal further underlines its opportunistic, low-investment stance on this new frontier.

What are the rule-book terms of the acquisition, and what should investors watch?

Under the term sheet, Pulsar will issue common shares equivalent to US $80,000 in value to acquire the issued and outstanding shares of Hybrid Hydrogen. The exact number of shares will be determined near closing, typically via a volume-weighted average share price mechanism. All newly issued shares will be subject to a statutory hold period of four months and one day under TSXV rules. The term sheet grants Pulsar an exclusivity period of 60 days (supported by a US $20,000 fee) in which to complete due diligence and negotiate definitive documentation. The agreement is expressly non-binding except for standard provisions such as confidentiality and exclusivity, meaning closing remains conditional on definitive agreement, due diligence, shareholder and regulatory approvals (including TSXV acceptance). It is noteworthy that Hybrid Hydrogen has no revenue and no defined helium resources at present, which underlines the early-stage, exploration-option nature of the deal. From a governance standpoint, Pulsar disclosed that director Neil Herbert, who is a minority shareholder in Hybrid, abstained from deliberations and voting on the transaction—an important signal in the micro-cap mining space.

How does this deal fit into Pulsar Helium’s broader strategy and capital-deployment plan?

Pulsar Helium describes the Michigan transaction as a “low-cost, high-optionality” add-on that preserves cash for advancing Topaz. The equity-financed structure is consistent with a junior miner prioritising capital discipline. Pulsar recently filed a base shelf registration, which offers flexibility for raising further equity or other instruments as new milestones are reached. The company’s strategic choice to use paper rather than cash for Michigan suggests the acreage is viewed as optional exploration upside rather than core near-term value driver. That said, if the Michigan licence yields a meaningful discovery, it could boost the company’s prospect robustness and provide a second growth pillar alongside Topaz. In the broader market, helium remains a critical resource with supply constraints and strong demand drivers (such as semiconductors, medical imaging, and aerospace). By advancing multiple projects in provinces with basement-sourced helium systems, Pulsar aims to build a differentiated portfolio in a niche but strategically important commodity segment.

What does the market think, and what does the current stock and investor sentiment reveal?

The immediate market impact appears limited, in part because the dollar value of the transaction is modest and the share issuance dilutive but small. Real-time trading shows the TSXV line of Pulsar Helium hovering in the mid-CAD 0.90s range. Early commentary from wires and analysis platforms highlights the strategic logic of the move while emphasising its low-size and early‐stage nature. Institutional flows into helium and critical-raw-materials juniors tend to be event-driven: meaningful de-risking, new resource statements, off-take deals or financing partnerships. On the strength of today’s announcement alone, many analysts and investors view it as a moderate positive (neutral-to-constructive) rather than a transformative event. For existing shareholders or risk-seeking investors, the message is “hold and watch” with a keen eye on next-stage execution rather than leap into new positions based purely on the Michigan news.

What are the key risks and what would success look like for Pulsar Helium in Michigan?

Major risks include the lack of proven helium resources in the Michigan acreage, the non-binding nature of the term sheet, and the need for further investment to underpin geological validation. The upside scenario, however, offers optional value: success would involve Pulsar defining structural traps, confirming helium concentrations, and possibly spudding test wells that replicate the model proven at Topaz. A successful outcome would increase the company’s prospect count, diversify its geography, and validate the basement-sourced helium thesis in a new enclave. On the flip side, if exploration fails to show helium of commercial grade or the cost of testing outweighs potential returns, the acreage may sit idle. Given the low cost of entry, the risk is contained—but so too is the immediate reward.

What’s next and how should investors frame this move across the 2025-26 horizon?

Investors should track several near-term milestones. First, completion of a definitive acquisition agreement within the exclusivity window and formal closing. Second, deployment of a technical work programme in Michigan—geophysical surveys, geochemical sampling, stratigraphic testing. Third, ongoing progress at Topaz remains pivotal: data on helium-3 and helium-4 concentrations, resource statement updates, pilot testing and commercial pathway announcements will drive the share’s next leg. From a portfolio-construction standpoint, the Michigan deal adds breadth but does not yet shift the strategic emphasis. Investors should remain forward-looking, recognising that the helium supply narrative (tightening supply, expanding demand) remains favourable, but that value creation will depend on tangible delivery not acreage skimming.

Key Takeaways

Pulsar Helium is acquiring 100 percent of Hybrid Hydrogen for US $80,000 in an all-share deal, gaining roughly 6,742 acres of non-hydrocarbon gas rights in Michigan’s Upper Peninsula.

The geological model mirrors the company’s flagship Topaz project in Minnesota, leveraging basement-sourced helium systems and established regulatory frameworks in Michigan.

The acquisition is non-binding and all-share, preserving cash for Pulsar’s core development path while offering optional exploration upside.

Early market reaction is neutral to modestly positive: the deal signals disciplined growth but is unlikely to trigger a major re-rating without subsequent drilling or assay results.

Success hinges on defining helium traps and grades in Michigan and delivering further technical milestones at Topaz, with clear implications for how the helium supply-side thesis evolves in 2026.