-- Pulsar Helium (PLSR.V) said Wednesday that it secured an option to lease 488,090 gross acres of mineral rights comprising the Falcon project in Michigan from Keweenaw Land Association (KLA).
Pulsar said the three-year option commenced March 31 and covers non-hydrocarbon gases including helium-4, helium-3, carbon dioxide and hydrogen. The company must spend at least US$1.0 million in exploration under the agreement.
The agreement contains a staged acreage surrender schedule, allowing Pulsar to refine its exploration focus across the project and thereby reduce its retained acreage. A final development leasehold of up to 20,000 net acres can be selected at the exercise of the option, Pulsar said.
Upon the exercise of the option, Pulsar and KLA would enter into a definitive agreement with established commercial terms, including proceeds distributed as royalty revenue payable to KLA.
"Michigan's Precambrian basement geology is highly prospective, and the region has not seen any activity for primary helium exploration," Pulsar Chief Executive Officer Thomas Abraham-James said.
The company said it has assembled a team to evaluate the property.