Nautilus Minerals Inc.

Nautilus Minerals Inc.

May 16, 2016 08:18 ET

Nautilus Minerals Announces Financial Results for Q1 2016

TORONTO, ONTARIO--(Marketwired - May 16, 2016) - Nautilus Minerals Inc. (TSX:NUS)(OTCQX:NUSMF)(OTC PINK:NUSMF) (the "Company" or "Nautilus") announces the release of its unaudited consolidated Financial Statements for the first quarter ended March 31, 2016, together with Management's Discussion and Analysis.

2016 Significant Events to date

  • Factory Acceptance Testing ("FAT") completed by Soil Machine Dynamics on the Seafloor Production Tools ("SPTs")
  • Awarded contract for equipment storage and wet testing of the SPTs
  • SPTs arrived safely at Duqm Port in Oman
  • Completed assembly of the Subsea Slurry and Lift Pump ("SSLP") and commenced FAT
  • Advanced construction of the Production Support Vessel ("PSV")
  • Completed rights offering
  • US$47.5 million in cash and cash equivalents as at March 31, 2016 (C$28 million from the closing of the rights offering received on April 8, 2016)

Mike Johnston, Nautilus' CEO, commented, "It is very pleasing to see the progress that has been made on our seafloor production equipment this past quarter; in particular, taking delivery of the three SPTs and sending them safely to Oman where it is intended that they undergo wet testing later this year, while also commencing FAT on the SSLP. In the coming months, we will remain focused on the build of the PSV and the delivery of the equipment to be integrated in it. The momentum continues to build as we work towards commencing seafloor operations at the Solwara 1 project site in Q1 2018."

The Financial Statements and Management's Discussion and Analysis will be filed on and will also be available on the Company's website

For more information please refer to

Nautilus Minerals Inc.

Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits. Nautilus was granted the first mining lease for such deposits at the prospect known as Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver. The Company has also been granted its environmental permit for this site. Nautilus also holds highly prospective exploration acreage in the western Pacific (granted and under application), as well as in international waters in the Central Pacific. A Canadian registered company, Nautilus is listed on the TSX:NUS stock exchange and trades on the OTCQX:NUSMF, and is also a member of the Nasdaq International Designation program. Its corporate office is in Brisbane, Australia. Its major shareholders include MB Holding Company LLC, an Oman based group with interests in mining, oil & gas, which holds a 27% interest and Metalloinvest, the largest iron ore producer in Europe and the CIS, which has a 15% holding (each on a non-diluted basis, excluding loan shares outstanding under the Company's share loan plan).

Neither the TSX nor the OTCQX accepts responsibility for the adequacy or accuracy of this press release.

Certain of the statements made in this news release may contain forward-looking information within the meaning of applicable securities laws, including statements with respect to the SPTs undergoing wet testing later in 2016 and the plan to commence seafloor operations in Q1 2018. We have made numerous assumptions about such statements, including assumptions relating to the funding, completion and operation of the Company's seafloor production system. Even though our management believes the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that they will prove to be accurate. Forward-looking information by its nature involves 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 information. Please refer to our most recently filed Annual Information Form in respect of material assumptions and risks related to the prospects of extracting minerals from the seafloor and other risks relating to the Company's business and plans for development of the Solwara 1 Project. The Company is assuming that the seafloor production system, including the SPTs, will operate according to the Nautilus specifications and that the seafloor operations will commence on schedule. Risks related to such arrangements include delay to the planned testing operations of the seafloor production equipment, including the SPTs, and a consequent delay to the commencement of seafloor operations. Risks related to advancing towards production include the risk that the Company will be unable to obtain at all or on acceptable terms the remaining financing necessary to fund completion of the build, testing and deployment of the Company's seafloor production system. As the Company has not completed an economic study in respect of the Solwara 1 Project, there can be no assurance that the Company's production plans will, if fully funded and implemented, successfully demonstrate that seafloor resource production is commercially viable. 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.

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