NAUTILUS Minerals has entered into a funding mandate agreement with Deep Sea Mining Finance Ltd (DSMF).
The DSMF will try to leverage international expertise and financial relationships of Nautilus’ two major shareholders to assist in advancing the development of the Solwara 1 project.
Mark Horn will lead DSMF, a newly-incorporated private company in the British Virgin Islands.
It intends to be 50 per cent owned by:
- USM Finance Ltd, a wholly owned subsidiary of USM Holdings Ltd, an affiliate of Metalloinvest Holding (Cyprus) Limited; and,
- Mawarid Offshore Mining Ltd, a wholly-owned subsidiary of MB Holding Company LLC.
DSMF has been appointed as the company’s exclusive financial adviser in respect of the remaining project financing of up to US$350 million (K1.09 billion) to complete the development of the Solwara 1 project.
The company may terminate DSMF’s exclusivity rights under the agreement if it fails to arrange binding commitments in respect of financings of at least US$50 million (K156.32 million) by Dec 4 this year.