Nautilus seeks to extend maturity date of loan

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, for 30 days ending on February 8.

In a statement this week, Nautilus said it was in discussions with an arm’s-length party to secure a US$5 million (K16.8 million) loan.

Nautilus must receive the loan, or another source of funding, on or before January 14 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, 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 Ltd.

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.

Any transactions will be subject to all necessary stock exchange, third-party and Government approvals, as well as compliance with all other regulatory requirements.

Nautilus Minerals is focused on the Solwara 1 Project, which is located at 1600m water depth in the Bismarck Sea.

Solwara 1 is located approximately 30km from the nearest coast (New Ireland) and 50km north of the international port of Rabaul (East New Britain).

SOURCE:PacNews