Nautilus Minerals is seeking to raise up to C$103 million in a rights offering and has filed a short form prospectus in each province of Canada, other than Quebec.
The rights offering includes an additional subscription privilege under which holders of rights who fully exercise their rights will be entitled to subscribe for additional common shares of the company, if available, that were not otherwise subscribed for under the rights offering.
The company has also registered the offer and sale of the shares issuable on exercise of the rights within the United States with the United States Securities and Exchange Commission.
The company’s two largest shareholders, MB Holding Company LLC and Metalloinvest Holding (Cyprus) Limited, which, together with their affiliates, collectively hold approximately 48% of the outstanding common shares of Nautilus, have each indicated their intention to participate in the offering by exercising all or a portion of their basic subscription privilege.
The net proceeds from the offering will be used by the company to advance the construction and development of the Seafloor Production System and for general working capital requirements. In order to complete the entire Seafloor Production System for initial deployment and testing operations at the company’s Solwara 1 Project in Papua New Guinea, Nautilus will need to obtain additional funding in excess of the maximum proceeds that can be raised under the rights offering.
Nautilus’ CEO Mike Johnston said, “We have made significant progress in the construction of our Seafloor Production System over the last 12 months. The rights offering will enable the company to continue to build momentum as we move closer to our goal of commencing seafloor operations by end of the first quarter of 2018.”