Nautilus seeks to extend loan maturity date

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Nautilus and Deep Sea Mining Finance Ltd have agreed to extend by 30 days the maturity date of the existing secured loan facility, which is currently due on January 8, by 30 days ending February 8.

In a statement released this week, Nautilus said it was in talks with an arm’s length party to secure a $ 5million (K16.8million) loan.

Nautilus must receive the loan, or other source of funding, by January 14 for the Nautilus group of companies to continue operating.

There can be no assurance that the business will receive the necessary funding by this date.

In the meantime, and following the Company’s December 2 press release, Nautilus continues to negotiate with arm’s length third parties to create a new joint venture (the “Vessel JV”) and related transactions to provide a financing solution. The JV vessel is believed to be owned by third parties and the Nautilus subsidiary, Nautilus Minerals Niugini Ltd.

There can be no assurance that the Company will be able to successfully negotiate definitive agreements with respect to and complete any of the transactions discussed.

Any transaction will be subject to all necessary exchange, third party and government approvals, as well as compliance with all other regulatory requirements.

Nautilus Minerals is focused on the Solwara 1 project, which is located 1,600m deep in the Bismarck Sea.

Solwara 1 is located approximately 30 km from the nearest coast (New Ireland) and 50 km north of the international port of Rabaul (Eastern New Britain).

SOURCE: PacNews


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