The drawn-out quest for Nautilus Minerals Inc (TSX: NUS; OTC: NUSMF) to become the world’s first seafloor massive sulphides miner in Papua New Guinea waters has seen the company take up another loan from a company linked to its two major shareholders.
The company has received a new loan from Deep Sea Mining Finance Ltd for $US455,000, which has provided a secured structured credit facility of up to $US$34 M.
With the latest loan, Nautilus has issued Deep Sea with an additional 1,954,467 warrants of the company. Each warrant entitles the lender to purchase one common Nautilus share at C17 cents for a period of five years from the date of issue.
To date Nautilus has issued a total of 73,024,050 share purchase warrants to Deep Sea in connection with loans totalling $US17 M.
The loans bear interest at 8% per annum, payable bi-annually in arrears. All loans have a maturity date of January 8, 2019.
Deep Sea is a private company owned 50% by key shareholders Metalloinvest Holding (Cyprus) Ltd and Mawarid Offshore Mining Ltd., a subsidiary of MB Holding Company LLC.
Nautilus has spent millions on design and development of special seabed mining machinery for the Solwara-1 project in the Bismarck Sea that contains high grade copper, gold, zinc and other minerals.
It also has had a special ship developed to transport material that would be mined at Solwara-1 at which it has the PNG Government as a 30% partner.