Solwara 1 needs more funding

By SHIRLEY MAULUDU
NAUTILUS Minerals needs about US$250 million (K790 million) more to continue with the development of the Solwara 1 project in New Ireland, chief executive Mike Johnston says.
Johnston said yesterday that the company was working with its financial advisers to find the additional financing.
“Nautilus continues to work with M.Horn & Co Ltd who has been appointed as the company’s exclusive financial adviser in respect of the remaining project financing up to US$250 million (K790 million) required to complete the development of the Solwara 1 project,” he said.
“The project continues to receive ongoing financial support from
our two largest shareholders.”
During a recent meeting with the Mining Minister Johnson Tuke, Johnston said: “For the project, the final capital we need to raise an additional roughly about US$250 million.
And then there is working capital and exploration that we intend to do which brings it up to about US$300 million (K948.02 million).
That’s the final capital,” Johnston said.
Meanwhile, the company is confident that the Solwara 1 project will go ahead as planned.
Johnston said the project is set for production next year.
He gave the assurance during a presentation he made about the project to Tuke in Port Moresby on Monday.
“The timeline is driven by the delivery of the vessel.
The delivery of the vessel at this stage is schedule for the end of this year, or possibly early next year,” Johnston said. “It’s about three months from the delivery of the vessel to arrive in Papua New Guinea.
“The end of the first quarter or first half 2019 is the current schedule for the startup of the production.”