Nautilus Minerals has satisfied the first of the two conditions precedent to its agreement with the nominee of the Independent State of Papua New Guinea to secure certain intellectual property rights.
In May 2014, the company announced that following the State nominee, Eda Kopa (Solwara) Ltd, paying US$113 million into escrow for its 15% interest in the Solwara 1 Project up to first production, Nautilus was to secure for the State’s nominee certain intellectual property rights and the charter of a Production Support Vessel in order for the escrowed funds to be released.
The company’s CEO Mike Johnston says, “Nautilus is pleased it has satisfied the first of the conditions precedent by securing the intellectual property rights required by the State and is now one step closer to securing the release of the escrowed funds.
“Discussions remain on track with potential vessel partners to obtain a suitable vessel arrangement within the timeframe required under the agreement, which will see the funds released from escrow.”
Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits. It was granted the first mining lease for such deposits at the Solwara 1 prospect 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.