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Business |
Nautilus in talks with POMSox
By BAEAU TAI
THE world’s first underwater miner, Nautilus Minerals, is holding
discussions with Port Moresby Stock Exchange (POMSoX) for possible
listing in the future.
“We spoke with POMSoX this morning (yesterday) and our intention
is to make the stock affordable for the local people. We are not
trying to raise capital,” chief executive of Nautilus David Heydon
told a luncheon presentation at the Crowne Plaza yesterday.
In conjunction with a listing on the London AIM market the company
raised US$100 million (K313.4 million) followed by a US$75 million
(K235.11 million) private placement in North America.
Mr Heydon said this financing was the next piece in their business
plan to enable them to develop a low cost base metal mine based on
seafloor massive sulphide copper-zinc-gold silver deposits.
This financing from North America and the United Kingdom
institutional investors complement the US$99.6 million (K312.2
million) financing completed late last year by major shareholders,
Anglo America, Teck Comico and Epion.
Nautilus has raised about US$295 million (K924.7 million) in the
first 10 months since listing on the Toronto Stock Exchange
providing a strong capital base to fund the company’s plans.
“Our focus is the Solwara One project. This is the world’s first
underwater mining and it has been mentioned four times at the
general assembly in the United States.
“PNG did very well in the copper mines in the last century and we
are going to be the next,” he said.
Mr Heydon is on a visit to PNG with the company’s chief operating
officer Tony O’Sullivan to see the ground work.
With cash in bank of US$275 million (K862 million), Mr Heydon said
this cash, together with other sources of capital, were expected
(subject to time permitting) to be sufficient to fund the company
into production at the Solwara One project.
The funds are planned to be deployed by the company in detailed
design and construction of specialist sub-sea mining equipment,
including two mechanical miners, power umbilicals, pumps, a 1,800m
riser pipe and related handling equipment, as well as subject to
permitting, the construction of an on-shore concentrator plant and
the acquisition of the necessary land on which to build the plant
and port.
He claimed that operating on an offshore mine would be cheaper and
faster than land-based operations.
Nautilus is working in partnership with Barrick Gold (its other
major shareholder) and expects to complete environmental studies
this year with plans to start production in 2009.
 
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