Nautilus Minerals Inc.

Nautilus Minerals Inc.

March 24, 2011 08:51 ET

Nautilus Annual Results

TORONTO, ONTARIO--(Marketwire - March 24, 2011) - Nautilus Minerals Inc. (TSX:NUS)(AIM:NUS) ended 2010 in a strong financial position with US$165 million in cash and cash equivalents, and after making significant progress in the development of its pioneering seafloor resource project in the Bismarck Sea of Papua New Guinea.

The company has today released its 2010 full year financial results, Annual Information Form and updated NI43-101 Technical Report.

The highlights of the year were as follows:

  • Commencement of a major exploration drilling campaign in the Bismarck Sea, which has delivered an enhanced understanding of the Solwara 1 deposit.
  • Advanced development of the Solwara 1 project, with the key contract for construction of Seafloor Production Tools (SPT) reinstated during the year
  • Release of a comprehensive study outlining expected capital and operating costs associated with production of ore from the Solwara 1 deposit, which confirms the robust commercial aspects of the project (link to full study below in links section).

Since the year end, the company has announced further major progress in the development of the Solwara 1 project, and in other exploration initiatives.

  • In January, the PNG Government granted Nautilus the first Mining Lease in the Pacific region to allow deep sea resource development in the Bismarck Sea. The lease provides Nautilus with a 20 year licence to mine an area of approximately 59 km2 surrounding Solwara 1, 50 km north of Rabaul, where Nautilus intends to mine high-grade copper and gold deposits on the seafloor, at depths of approximately 1600 metres. (link to full study below in links section)
  • In March, the PNG government confirmed its intention to take a 30% stake in the Solwara 1 project as a joint venture partner. The government will contribute funds to the project in proportion to its interest, including its share of the exploration and development costs incurred to date.
  • Also in January, Nautilus moved to a 100% interest in United Nickel Inc (since renamed), which has applied to the International Seabed Authority for a license to explore for polymetallic nodules in a 75,000 square kilometre area of the seafloor in the Clarion Clipperton Zone (CCZ) of the Eastern Pacific. The CCZ contains significant accumulations of polymetallic nodules, which may become an important source of copper, nickel and cobalt in the future.

The company reported a loss of US$45 million for the year, with total expenses of US$46.5 million, including US$26 million in exploration costs, and wages and salaries of US$7.7 million. Total assets were US$207 million, including US$165 million in cash and cash equivalents, leaving the company well positioned for the ongoing development of the Solwara 1 project in 2011.

"Nautilus made excellent progress in 2010, the most significant milestone being the grant of the Mining Lease early in the New Year," said Nautilus President and CEO Stephen Rogers.

"We are now finalising an agreement with a potential joint venture partner, and our exploration drilling campaign has produced encouraging results. We look forward to further significant advancements in the project during the remainder of 2011," he said.


Offshore Production System Definition and Cost Study:

Nautilus Granted Mining Lease:

The following documents have been filed on SEDAR and are available from the Company's website, and SEDAR

  1. Audited consolidated financial statements and Management's Discussion and Analysis for the year ending December 31, 2010;
  2. Annual Information Form.
  3. National Instrument 43-101 Technical Report as at December 31, 2010

Nautilus Minerals Inc.
Nautilus is the first company to commercially explore the ocean floor for polymetallic seafloor massive sulphide deposits and is currently developing its first project. The Company's main focus is the Solwara 1 project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean.

Nautilus is listed on the TSX and AIM stock exchanges, and has among its largest shareholders two of the world's leading international resource companies Anglo American (11.1%) and Teck Resources (6.8%), as well as Metalloinvest, one of the largest and fastest growing mining and metallurgical holding companies in Russia, which beneficially owns 21% of the Company's issued shares through Gazmetall Holding (Cyprus) Limited.

Certain of the statements made in this news release may contain forward-looking statements within the meaning of the United States Securities Exchange Act of 1934 and forward-looking information within the meaning of applicable Canadian securities law. Forward-looking statements and forward-looking information include, but are not limited to statements or information with respect to the conclusion of the negotiations of a strategic partner relationship, the date of commencement of production and the annual rate of production from the Solwara 1 project and the amount of copper and gold to be derived there from, and the expansion of the resource base within the disclosed time period. We have made numerous assumptions about the material forward-looking statements and information contained herein, including among other things, that the possible strategic partners will continue to negotiate with Nautilus and the negotiations will be successfully concluded, that the planned annual rate of production will be achieved within the disclosed time period. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Forward-looking statements and information by their nature involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements or information. Such risks, uncertainties and other factors include, among others, the risk that the potential strategic partners will not continue to negotiate with Nautilus in good faith or at all. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information. Although we have attempted to identify factors that would cause actual results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly you should not place undue reliance on forward-looking statements or information. Except as required by law, we do not expect to update forward-looking statements and information as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

Neither the TSX nor the London Stock Exchange accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Nautilus Minerals Inc. (Toronto)
    Investor Relations
    +1 (416) 551 1100
    Nautilus Minerals Inc.
    Joe Dowling
    Vice President Investor Relations and Communications
    +61 (7) 3318 5544 or Cell: +61 431 365 741
    Numis Securities Limited
    John Harrison
    Nominated Adviser
    + 44(0) 20 7260 1000
    Numis Securities Limited
    James Black
    Corporate Broking
    + 44(0) 20 7260 1000