Pulsar Helium (AIM:PLSR) has signed and accepted a firm proposal from Chart Energy & Chemicals for equipment to build a commercial-scale helium liquefaction plant in Minnesota, worth $85.5 million in aggregate.
The primary helium exploration and development company, listed on AIM, the TSX Venture Exchange and OTCQB, said the deal covers a helium purification and liquefaction plant with capacity to produce 861 litres per hour, equivalent to roughly 7.5 million litres of liquid helium a year at continuous nameplate operation, alongside a CO2 plant capable of capturing 300 tonnes a day.
Chart operates as a dedicated segment of Baker Hughes following Baker Hughes' acquisition of Chart Industries in July.
The agreement follows a binding letter signed on 30 June reserving the plant, and an announcement on 3 August that extended the deadline for a definitive purchase agreement to 30 September while keeping exclusivity and pricing intact.
Pulsar will pay $5.025 million upfront on signing and TSX Venture Exchange approval, funded from existing cash, which the company reports at $25.2 million.
That first payment includes $750,000 due under the existing notice to proceed, and all prior LNTP payments, totalling $1 million including a $250,000 deposit, will be credited dollar-for-dollar against the new schedule.
A second milestone payment of $8.55 million falls due on 31 January 2027, subject to further funding, and will authorise Chart to begin procurement of long-lead items.
"Signing and accepting Baker Hughes' Proposal is a major milestone for Pulsar and an important step in advancing our proposed Rare Gas Hub," said Thomas Abraham-James, Pulsar's chief executive and director.
Should that second payment be missed, the project enters an automatic suspension of up to 180 days, during which the reserved liquefaction equipment stays protected and no cancellation charge applies.
Equipment manufacture is expected to take roughly two years following the second payment, and some components for the helium liquefaction system have already been built.
Pulsar is separately progressing discussions on a prospective plant site in Lake County, Minnesota, where it bought approximately 1,360 acres of surface land for $2.48 million in May, though any site arrangement remains subject to due diligence and permits.
Development of the plant still depends on further financing, completion of engineering and construction work, and receipt of required permits, with the company due to pay the next milestone by 31 January 2027.