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Nautilus loads up more credit

Marine mining hopeful Nautilus Minerals (TSX:NUS) has received a further loan under its US$34 million secured structured credit facility with Deep Sea Mining Finance.
Nautilus loads up more credit Nautilus loads up more credit Nautilus loads up more credit Nautilus loads up more credit Nautilus loads up more credit

Work on Nautilus Minerals' production support vessel has been stopped

Staff Reporter

The Vancouver-domiciled company said it received $770,000 under the facility, which it would apply towards working capital requirements and to enable the company to continue to advance the Solwara 1 project, offshore Papua New Guinea.

It was working with Dubai-based financial advisor Metals Logistics Investments to secure alternative project financing of up to about US$350 million needed to complete development of Solwara 1. Canadian investment dealer Eight Capital had been appointed to complete a full strategic review of strategic alternatives.

Under terms of the loan, Nautilus issued the lender 3.3 million warrants, each entitling it to buy a Nautilus common share at C17c a share for five years.

To date, Nautilus has issued Deep Sea 68.49 million warrants for loans totaling $15.95 million. Warrants were being issued at a rate of one warrant for each 23.27c of the principal amount advanced.

Work on Nautilus' production support vessel (PSV) had been stopped because of missed payments. The shipbuilding contract between Fujian Mawei Shipbuilding and MAC Goliath, the contractor engaged to procure the construction of the PSV, was rescinded.

Nautilus had seen its equity value drop 57.5% in the past 12 months, closing 5.56% in the red at C8.5c a share on Tuesday. The company retained a market value of about C$58 million.