VANCOUVER, British Columbia, Dec. 02, 2018 (GLOBE NEWSWIRE) -- Nautilus Minerals Inc. (TSX:NUS, OTC:NUSMF Nasdaq Intl Designation) (the "Company" or "Nautilus") provides 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 Limited (“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) Limited.
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of the shipyard, Fujian Mawei Shipbuilding Ltd (the “Shipyard”), where the PSV is being built, that the Shipyard has rescinded the shipbuilding contract between the Shipyard and MAC, the contractor engaged by Nautilus to procure the PSV on behalf of Nautilus.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 January 8, 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.
For more information please refer to www.nautilusminerals.com or contact:
| Investor Relations Nautilus Minerals Inc. (Toronto) Email: investor@nautilusminerals.com Tel: +1 416 551 1100 |
The TSX does not accept responsibility for the adequacy or accuracy of this press release.
Certain of the statements made in this news release may contain forward-looking information within the meaning of applicable securities laws, including statements with respect to the proposed Vessel JV and related transactions; the proposed extension of the loan facility; the ownership and charter of the PSV; and any statements relating to the continued development of the Solwara 1 project. Forward-looking information by its nature involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information. Please refer to our most recently filed Annual Information Form in respect of material assumptions and risks related to the prospects of extracting minerals from the seafloor and other risks relating to the Company's business and plans for development of the Solwara 1 Project. Risks related to continuing the Company's operations and advancing the development of the Solwara 1 Project include the risk that the Company will be unable to obtain at all or on acceptable terms, and within the timeframes required, the remaining financings or other transactions necessary to fund completion of the build, testing and deployment of the Company's seafloor production system; that the Company will be unable to satisfy the conditions to receiving additional loans under the loan agreement with the Lender or to successfully negotiate an extension to the maturity date of the outstanding loans; that the Company will be unable to arrange for the charter of the PSV from the owner of the PSV; and that the Company will be unable to conclude definitive agreements for the Vessel JV and then complete such transactions. As the Company has not completed a prefeasibility study or feasibility study in respect of the Solwara 1 Project, there can be no assurance that the Company's production plans will, if fully funded and implemented, successfully demonstrate that seafloor resource production is commercially viable. Except as required by law, we do not expect to update forward-looking statements and information as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.
| About Nautilus Minerals Inc. Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits. Nautilus was granted the first mining lease for such deposits at the prospect known as Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver. The Company has also been granted its environmental permit for this site. Nautilus also holds prospective exploration acreage in the western Pacific (granted and under application), as well as in international waters in the Central Pacific. A Canadian registered company, Nautilus is listed on the TSX:NUS stock exchange and is also a member of the Nasdaq International Designation program. Its corporate office is in Brisbane, Australia. Its major shareholders include MB Holding Company LLC, an Oman based group with interests in mining, oil & gas, which holds a 30.4% interest and Metalloinvest, the largest iron ore producer in Europe and the CIS, which has a 19.2% holding (each on a non-diluted basis, excluding loan shares outstanding under the Company’s share loan plan). |