Nautilus Provides Corporate Update
VANCOUVER, British Columbia, Jan. 08, 2019 (GLOBE NEWSWIRE) — Nautilus Minerals Inc. (TSX:NUS, OTC:NUSMF Nasdaq Intl Designation) (the “Company” or “Nautilus“) provides the following corporate update.
Nautilus and Deep Sea Mining Finance Ltd. have agreed to extend the maturity date of the existing secured loan facility, which is currently due on January 8, 2019, for 30 days ending on February 8, 2019.
Nautilus is currently in discussions with an arm’s length party to secure a US$5 million loan (the “Loan”). Nautilus must receive the Loan, or another source of funding, on or before January 14, 2019 in order for the Nautilus group of companies to continue operations. There can be no assurances that the Company will receive the necessary funding by that date.
In the interim, and further to the Company’s news release dated December 2, 2018, Nautilus continues to negotiate with arm’s length third parties to create a new joint venture company (the “Vessel JV”) as well as related transactions to provide a long-term funding solution. The Vessel JV would be owned by the third parties and Nautilus’ subsidiary Nautilus Minerals Niugini Limited.
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:
Nautilus Minerals Inc. (Toronto)
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 Loan, the proposed Vessel JV and related financial transactions. 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 complete the Loan transaction in the time required; that the Company will be unable to arrange for the charter of the production support vessel from the owner of the vessel; 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).