Nautilus in process of securing K22.6mil for Solwara 1 project

NAUTILUS Minerals is in the process of securing short-term loans to progress immediate works on the Solwara 1 project in New Ireland.
The company, in an announcement to the Toronto Stock Exchange last week, also noted the company entering into a funding mandate agreement.
“The bridge loans, which the company expects to be in the amount of up to US$7 million (K22.6 million), will assist the company’s immediate working capital requirements and facilitate payments required to continue the development of the company’s seafloor production system to be first utilised at the company’s Solwara 1 project,” Nautilus said.
“The loans bear interest at 8 per cent per annum, payable bi-annually in arrears with a one-year maturity date.”
The bridge loans are expected to form part of a larger secured structured credit facility of up to US$34 million (K109.8 million) on terms currently being negotiated.
“The company requires significant additional funding in order to complete the build and deployment of the seafloor production system to be utilised at the Solwara 1 project by the company and its joint venture partner, the Independent State of Papua New Guinea’s nominee,” Nautilus said.
“There can be no assurances that the company will be successful in securing the necessary additional financing transactions within the required time or at all, including in connection with the funding mandate.
“Failure to secure the necessary financing may result in the company undergoing various transactions including, without limitation, asset sales, joint ventures and capital restructurings.
“The company will provide further updates as circumstances warrant.”
Nautilus Minerals has arranged to receive bridge loans from Deep Sea Mining Finance Ltd and has also entered into a funding mandate agreement with M. Horn & Co Ltd.