Nautilus seeks Solwara funding

By SHIRLEY MAULUDU
NAUTILUS Minerals is still exploring funding options for its Solwara 1 project, chief executive officer Mike Johnston says.
Johnston told The National, in response to a question on whether Nautilus had already secured funding for the project, that it had strong support from its shareholders. “Nautilus has strong support from its major shareholders, who continue to provide a monthly bridge finance facility,” he said.
“Additionally, we continue to explore other sources of funding for the Solwara 1 project, and remain in active discussions with a number of parties.
“We will continue to update the market as those discussions progress.” Nautilus was granted its first mining lease in January 2011 for Solwara 1 in New Ireland.
An environmental permit was awarded in December 2009.
The Solwara 1 deposit, which sits on the seafloor at a water depth of some 1600 metres, contains a copper grade of approximately 7 per cent.
The company last July said it was seeking alternative sources of financing to maintain the development of the Solwara 1 project and its operations.
Nautilus said then that it required significant additional funding to complete the building and deployment of the seafloor production system to be used at the Solwara 1 project.
Failure to secure bridge financing and/or project financing could result in the company taking steps to maximise shareholder value.
It includes suspending or terminating the development of the seafloor production system and Solwara 1 project, and engaging in various transactions including, without limitation, asset sales, joint ventures and capital restructurings.