The aspiring seabed miner Nautilus Minerals Inc (TSX: NUS; OTC: NUSMF) has overcome its immediate hurdle of its next tranche of capital to help complete the mining and shipping equipment for its venture in Papua New Guinea.
The company announced late last week that it had received a new loan from Deep Sea Mining Finance Ltd for $US500,000 as part of its secured structured credit facility of up to $US34 million.
The funds are for the seafloor massive sulphides project in the Bismarck Sea known as Solwara-1 which contained high grade copper, gold and other minerals.
With this latest loan from Deep Sea, a company owned by the two major shareholders of Nautilus, a total of an additional 2,147,766 warrants in the company will be issued. This entitles the lender to purchase one common share in the company at C17 cents for each warrant.
Nautilus said that to date it has issued 75,171,816 share purchase warrants to the lender in connection with loans totalling $US17.5 M.
The loans bear interest at 8% per annum, payable bi-annually in arrears. All loans have a maturity date of February 8, 2019.
“The company continues to assess its options, including various restructuring options. Any transactions will be subject to all necessary stock exchange, third party and government approvals, as well as compliance with all other regulatory requirements,” Nautilus aid.
Deep Sea is owned 50% by USM Finance Ltd, a wholly owned subsidiary of USM Holdings Ltd, an affiliate of Metalloinvest Holding (Cyprus) Ltd and the other 50% by Mawarid Offshore Mining Ltd, a subsidiary of MB Holding Company LLC.