Pulsar Helium (AIM:PLSR) has reported that the City Council of Two Harbors, Minnesota has approved a Purchase and Development Agreement covering land for its proposed Rare Gas Hub, a facility intended to house helium liquefaction and carbon capture capabilities.
The AIM and TSXV-listed helium company confirmed it expects to acquire the site, within the city's Industrial district, for US$1, land the city has appraised at US$143,200.
Pulsar is developing the Topaz helium project in Minnesota, where it holds a 100% working interest and has drilled multiple appraisal wells that encountered high-pressure gas, alongside federal laboratory confirmation of helium-3 in the raw gas stream.
The company in October signed a firm proposal with Chart Energy & Chemicals, a Baker Hughes subsidiary, for an $85.5m helium liquefaction and CO2 capture plant with capacity of 861 litres per hour, following a June reservation agreement for similar equipment.
The Two Harbors site sits on Lake Superior with access to Canadian National Railway's main line, a deep-water port and highway infrastructure.
Beyond the nominal land price, the city has offered up to $1m toward rail spur construction, site clearing, and extension of water, sewer, gas and electrical service to the building site, with Pulsar covering rail costs above that contribution.
The agreement also provides for the city to reimburse 90% of the increased portion of its share of property taxes attributable to the initial hub phase, paid by Pulsar MN, for 15 consecutive tax years once the facility reaches commercial operation, though the total value of this abatement has not yet been determined.
Pulsar will separately pursue tax abatements from Lake County and the Lake Superior School District, which will make their own decisions on those requests.
"The City Council's approval is an important step forward in our strategy to build a Rare Gas Hub that strengthens the U.S. supply chain for rare gases," said Thomas Abraham-James, Pulsar's chief executive and director, adding that the company looks forward to working with the city "on the financing, engineering, utility arrangements and remaining approvals needed before we commit to construction."
The agreement itself is not a binding commitment to build: Pulsar MN has a 365-day due diligence period from the 14 October effective date to deliver a formal Project Commitment Notice, after which either party may walk away without penalty. If Pulsar does commit, closing must follow within 10 business days, and commercial operation of the initial hub phase must be achieved within 36 months, subject to permitted extensions.
Remaining steps include environmental and property due diligence, securing project financing, executing supporting utility and tax agreements, zoning and permitting approvals, and rail access arrangements with Canadian National Railway. Electrical and gas service rates, connection charges and capacity commitments still need to be resolved through engineering studies and separate service agreements before Pulsar commits to the project.
The company flagged financing for the liquefaction plant equipment as a near-term priority, having disclosed on 12 October that it is in discussions with University Bank and Minnesota state and federal agencies over project-level debt and public-sector financing for the hub.
