Nautilus Minerals Inc.
AIM : NUS
TSX : NUS

Nautilus Minerals Inc.

October 09, 2007 18:54 ET

Nautilus Minerals Inc.: Shareholder Meeting to Consider US$39 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2007) - Nautilus Minerals Inc. (TSX:NUS)(AIM:NUS) (the "Company" or "Nautilus") is pleased to announce that the TSX has approved the terms and conditions of the private placement to Epion Holdings Limited ("Epion"), announced 27 September 2007, ("the Private Placement") subject to shareholder approval being received by December 25, 2007. The Company will schedule a meeting of shareholders as soon as practicable to allow shareholders to consider the Private Placement.

Epion has agreed to amend the Subscription Agreement which required the transaction to be completed on or before October 17, 2007 to provide the Company with sufficient time to arrange a meeting of shareholders.

David Heydon, Nautilus' CEO, commented: "The recent uplift in the Company's share price reflects the positive impact from securing an additional US$39 million to enable the Company to commit to its full exploration program for 2008 and 2009 so that the Company can maintain its momentum and continue to develop a pipeline of projects."

Heydon added: "Shareholders receive the added benefit that Epion has agreed, as part of the Private Placement, that if a takeover bid is made for Nautilus and recommended by the Board, that Epion will accept the bid or make a higher counter offer. This brings Epion in to line with the other major shareholders, Anglo American, Teck Cominco and Barrick Gold who are under a similar obligation. This ensures that none of these significant shareholders can block a takeover bid recommended by the Board, allowing shareholders to enjoy the full value of any such bid."

As announced on 27 September 2007, the Placement will take Epion's holding in the Company to approximately 23.2% of the issued share capital. The Company will request shareholder approval to amend the terms of 750,000 warrants issued previously to Epion, to remove the restriction that prevents Epion from exercising the warrants, if to do so, would take their shareholding to over 19.9%. The restriction now represents a disincentive for Epion to exercise its warrants which is clearly not in the best interests of the Company. This amendment relates to 750,000 warrants which expire on June 1, 2008 with each warrant exercisable at US$5.00 (C$5.00, GBP2.48) for a share.

(i) Exchange rate used in this announcement C$1.00 equals GBP 0.4955 equals US$1.00

About Nautilus Minerals Inc.

Nautilus is the first company to commercially explore the ocean floor for gold and copper seafloor massive sulphide deposits and is positioned to become a world leader in underwater mineral exploration. The Company's main focus for 2007 is the Solwara 1 Project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean.

Contact Information

  • Nautilus Minerals Inc. (Toronto)
    Investor Relations
    (416) 551-1100
    Email: investor@nautilusminerals.com
    or
    Nautilus Minerals Inc.
    President & CEO
    +61 (7) 3318 5555
    Email: ceo@nautilusminerals.com
    Website: www.nautilusminerals.com
    or
    Numis Securities Limited (NOMAD)
    John Harrison
    + 44(0) 20 7260 1000
    or
    Numis Securities Limited (NOMAD)
    James Black
    + 44(0) 20 7260 1000
    or
    Conduit PR Ltd (UK Financial PR)
    Arabella Hobbs
    + 44(0) 7429 6610 / +44 (0) 7833 926 694
    or
    Conduit PR Ltd (UK Financial PR)
    Ed Portman
    + 44(0) 7429 6610 / +44 (0) 7833 926 694