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Nautilus provides corporate update on its operations

Published by , Assistant Editor
Global Mining Review,

Nautilus Minerals Inc. (Nautilus) has provided the following corporate update.

Nautilus is currently negotiating the terms of an agreement with arm's length third parties that would involve the creation of a new joint venture company (the Vessel JV) to be owned by the third parties and Nautilus’ subsidiary, Nautilus Minerals Niugini Ltd (NMN). The purpose of the Vessel JV would be to fund the acquisition of the production support vessel (PSV) that Nautilus had previously arranged to be procured through MAC Goliath Pte Ltd (MAC) and the integration costs of installing the mining equipment on the PSV. The Vessel JV would own and operate the fully integrated PSV. The Vessel JV would charter the PSV to the existing Solwara 1 joint venture between NMN and the Independent State of Papua New Guinea’s nominee, Eda Kopa (Solwara) Ltd.

As previously disclosed, Nautilus has been notified by the owner of the shipyard, Fujian Mawei Shipbuilding Ltd (the Shipyard), where the PSV is being built, that the Shipyard has rescinded the shipbuilding contract between the Shipyard and MAC, the contractor engaged by Nautilus to procure the PSV on behalf of Nautilus. The Shipyard has continued to install components of the company's seafloor production equipment on the PSV, with the latest being the installation of an operating console in mid-November.

The company is currently in negotiations with various parties to enable the acquisition of the PSV to facilitate the proposed Vessel JV. There can be no assurances that such discussions will be successful. Nautilus is also currently in discussions with Deep Sea Mining Finance Ltd. (the Lender) to extend the maturity date of the existing secured loan facility provided by the Lender, which is currently due on 8 January 2019, in order to allow sufficient time for the company to progress the transactions discussed above. There can be no assurances that the company will be able to successfully negotiate definitive agreements in relation to, and complete, any of the transactions discussed above. Any transactions will be subject to all necessary stock exchange, third party and government approvals, as well as compliance with all other regulatory requirements. The company will provide further updates as circumstances warrant.

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