Nautilus Minerals Inc.

Nautilus Minerals Inc.

November 12, 2010 08:17 ET

Nautilus Minerals Announces Financial Results for Q3 2010 and Business Update

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - Nautilus Minerals Inc. (TSX:NUS)(AIM:NUS) (the "Company" or "Nautilus") announces the release of its unaudited consolidated financial results for the third quarter ended September 30, 2010 (the "Financial Statements") together with Management's Discussion and Analysis.

Third quarter 2010 highlights:

  • US$178.8 million (equivalent) in cash and cash equivalents held on deposit with major banks as at September 30, 2010
  • Exploration activities continued with the preparation for the 2010 drilling program
  • Project development advanced - particular emphasis on Seafloor Production Tools ("SPTs")
  • Strategic partner negotiations progressed

Stephen Rogers, Nautilus' CEO commented: "As we enter the final quarter, the Company is focused on reaching its target milestones for the year. Enhancing our knowledge of seafloor systems, through the 80 metre capable ROVdrill3 program, is a key milestone together with the ongoing strategic partner discussions."

Exploration Update
Preparations continued for the fourth quarter mobilisation of the ROVdrill3 drilling system to Papua New Guinea ("PNG"). Ship and drill rig modifications were well underway by quarter end. Personnel recruitment and training were also advanced according to schedule. Plans for additional geophysical surveys and environmental work to support the drilling results were also finalised. The vessel REM Etive has arrived on location at Solwara 1 and equipment trials are currently underway.

Nautilus continued to expand its tenement holdings during the quarter. Additional licences were granted in Vanuatu, while new applications were submitted in PNG, Solomon Islands and Fiji, bringing the total area under application or grant up to 529,232km2.

Project Development Update
The Company made good progress with the development of the Solwara 1 Project during the quarter.

The Company continues to work with the PNG Government in relation to the grant of the Mining Lease ("ML"). All required review steps have now been completed, and the key PNG Government review body, the Mining Advisory Council, has recommended to the Minister that the ML be granted.

Soil Machine Dynamics is progressing with the development of the SPTs. Detailed design has advanced and procurement of key component subassemblies is in process.

Technip USA is progressing with development of the Riser and Lifting System ( Subcomponent bid packages are being prepared so that tenders can be launched as soon as the project build is recommenced.

Technip Oceania Perth Limited has been retained to develop the planning for the equipment integration into the short listed vessels. Work has focused on refining the equipment control system integration, electrical system integration and detailed operational review of deck layouts for the short listed vessels.

Strategic Partner Update

Parallel negotiations continued with two prospective partners. The strategic objective is to provide additional capital for the development of the Solwara 1 offshore production system in conjunction with adding value for the project solution. These negotiations have been extended in an effort to secure the best shareholder value from an overall risk perspective. The target remains to conclude negotiations with a potential partner in the near future.

The Financial Statements and Management's Discussion and Analysis have been filed on and are also available on the Company's website

About 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 21.0% 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 grant of the Mining Lease, the negotiation of a strategic partner relationship, the development of the Riser and Lift System and the award of contracts. We have made numerous assumptions about the material forward-looking statements and information contained herein, including among other things, that the PNG Government will continue to entertain Nautilus' application for a Mining Lease, that the possible strategic partners will continue to negotiate with Nautilus and that Technip USA will continue to progress with the development of the Riser and Lift System. 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 Government of PNG will not continue to entertain Nautilus' application for a Mining Lease; the risk that Nautilus' contractual counterparties will not continue to honour their contracts with Nautilus; the risk that the potential strategic partners will not continue to negotiate with Nautilus in good faith or at all; and the risk that Technip USA will fail to make progress with the Riser and Lift System. 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 accept 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.
    Australian Project Office
    +61 (7) 3318 5555
    Numis Securities Limited
    John Harrison
    Nominated Adviser
    + 44(0) 20 7260 1000
    Numis Securities Limited
    James Black
    Corporate Broking
    + 44(0) 20 7260 1000