Nautilus Minerals has received Can$40 million from a rights offering and will use this to continue funding its three key contracts related to the Seafloor Production System for the Solwara 1 polymetallic seafloor massive sulphide deposit.
The key contracts include the build of the seafloor production tools by Soil Machine Dynamics, the supply of the subsea slurry lift pump by GE Hydril and the procurement of the rigid riser system by General Marine Contractors.
Continuing these contracts, say company officials, will ensure the best advancement with Solwara 1 pending a dispute resolution amid ongoing talks with the PNG Government.
Majority shareholder MB Holding Company LLC, through a fully-owned subsidiary, served as standby purchaser for 49.3 million unsubscribed shares below the Can$2 million offering fee. MB Holding, directly and through subsidiary Mawarid Offshore Mining, now owns 28% of Nautilus shares, Metalloinvest owns 20.75% and Anglo-American holds 5.95%.
Nautilus’ CEO Mike Johnston says, “It is very encouraging to see such a high level of support from shareholders.”
Nautilus is the first company to explore the ocean floor for polymetallic sulphide deposits and was granted the first mining lease for such deposits at the prospect known as Solwara 1 in PNG territorial waters, where it seeks copper, gold and silver production. Nautilus currently holds an environmental permit for the site. Nautilus also holds more than 500,000sqkm of high-prospect exploration acreage off PNG, the Solomon Islands, Fiji, Vanuatu and Tonga and elsewhere in East Pacific international waters.