Copper and future metals developer Oscillate – to be renamed Serval Resources – has signed a definitive agreement with Pulsar Helium to supersede the nonbinding term sheet announced on September 2 for the sale of up to 100% of Quantum Hydrogen for up to $800 000 in Pulsar common shares.

Quantum Hydrogen is Oscillate’s wholly owned subsidiary that holds its hydrogen assets.

In a media release, Oscillate says this divestment is a key part of its strategic shift to copper and associated metals central to the energy transition and the rapidly expanding digital economy.

"We are delighted to be making this disposal, given that these assets had become noncore to the company. This transaction marks a break from the past and allows management to solely focus on the advancement of our exciting exploration assets in the emerging copper belts of Namibia, Botswana and Côte d’Ivoire.

“It also allows the company to retain some upside to the hydrogen portfolio via our shareholding in Pulsar, which is a liquid entity – listed in Canada, the UK and the US – that plans to pursue further growth from these assets,” says Oscillate CEO Robin Birchall.

Pulsar will acquire an initial 80% of the issued share capital of Quantum, with the consideration being satisfied through the issuance of new Pulsar common shares equivalent to $400 000, issued in five monthly tranches of $80 000 each over a five-month period.

Oscillate says the number of shares in each tranche will be determined by the 30-day volume-weighted average price (VWAP) of Pulsar’s shares prior to each issuance – subject to the minimum price allowable by the TSX-V.

The securities to be issued in connection with the transaction will be subject to a four-month-and-one-day hold period – as required by the TSX-V.

Upon receiving TSX-V final acceptance, Oscillate notes that the first of five tranches of $80 000, will be settled through the issuance of Pulsar shares equal to $80 000, determined by the VWAP calculation.

The company explains that Pulsar has the right, and the intention, to acquire the remaining 20% of Quantum within 18 months for an additional $400 000 in Pulsar shares, under the same terms and pricing mechanism.