Debney, who had been chairman since June 1, 2016, stood down on December 27, seven days after the deadline to find the $10 million passed.

 

Following his resignation, the company said it was actively seeking the appointment of a new independent director.

 

The update on the financing situation that accompanied the announcement gave little comfort to investors that have seen the company's shares fall 38% since March 7.

 

 

Back in early December, the underwater mining hopeful said it had been able to defer the $10 million cashflow requirement from November 30 to December 20. The requirement was previously $15 million due by October 31 before it was reduced and firstly pushed back to November 30.

 

"Discussions with various parties including the major shareholders continue. These discussions have taken longer than expected but the company remains positive that the discussions will be concluded soon," Nautilus said on December 27.

 

The company's issues were further compounded on December 11 when Nautilus announced Fujian Mawei Shipbuilding, the owner of the shipyard where Nautilus' production support vessel is being built, had notified the company that MAC Goliath, the buyer of the PSV, had failed to pay the third instalment of the contract price (circa-$18 million, plus interest). 

 

Under the shipbuilding contract between the shipyard and MAC, MAC is required to rectify the default immediately, and perform corresponding obligations under the contract. If MAC fails to remedy the default within 21 days of the receipt of a notice to MAC from the shipyard, then the shipyard may rescind the contract.