Nautilus Minerals has received gross proceeds of more than C$28.263 million in a rights offering through the issuance of more than 188.425 million common shares, which represents approximately 27% of the total shares on offer.

The net proceeds from the rights offering will be used to advance construction and development of the company’s Seafloor Production System for the Solwara 1 seafloor project in Papua New Guinea. Funds will also be used for general working capital requirements.

The company’s largest shareholder, MB Holding Company LLC participated in the rights offering, through its subsidiary Mawarid Offshore Mining Ltd, by partially exercising its basic subscription privilege.

MB, together with its affiliates, now holds approximately 27% of the company’s outstanding shares, down from 28%. Second largest shareholder, Metalloinvest Holding (Cyprus) Limited, together with its affiliates, now holds approximately 15% of the outstanding shares, down from 21%.

Nautilus’ CEO Mike Johnston said, “We are very appreciative of the support provided by many of the company’s existing shareholders in the current market conditions.”

On completion of the rights offering, the total number of issued and outstanding shares of the company is now more than 622.443 million.

Having provided shareholders with the opportunity to participate in this significant financing, the company is considering various alternative sources of financing and has commenced discussions with various parties to explore its financing options.