Nautilus Minerals enters K110mil deal

Nautilus Minerals has entered a US$34 million (K110.8mil) agreement with lender Deep Sea Mining Finance for the development of the Solwara 1 project.
The Canadian based miner plans to utilise the loan as part of an overall US$350mil (K1.1bil) in project funding requirements.
Lender Deep Sea Mining Finance is a private aggregate of two companies: Usm Finance and Mawarid Offshore Mining. The companies have been granted a charge over Nautilus’ 85 per cent interest in Solwara 1, subject to PNG governmental and third-party approvals.
Of the US$34mil (K110.8mil) figure, Nautilus has already received US$11.25mil (K36.6mil) as a bridge loan, with the remaining US$22.75mil (K74.17mil) to be advanced with a maturity date of Jan 8 next year.
The loan is secured against Nautilus assets through a general security agreement as well as a pledge in the shares of subsidiary Nautilus Minerals Niugini.
The Solwara 1 project would involve extensive seabed dredging and is located approximately 30km from the nearest coast (New Ireland) and 50km north of the international port of Rabaul.
Last year, Conservation and Environment Protection Authority (Cepa) representative Joe Katape said Nautilus Minerals had satisfied most of the requirements of the Environment Act, such as the submission of the inception report and Environmental Impact Statement.
Katape told The National that the company has also submitted its Environmental Management and Monitoring Plan to Cepa to be assessed.