Nautilus Minerals Inc.
TSX : NUS
OTCQX : NUSMF
AIM : NUS

Nautilus Minerals Inc.

August 01, 2012 08:47 ET

Nautilus to Raise Funds and Continue Equipment Build

TORONTO, ONTARIO--(Marketwire - Aug. 1, 2012) - Nautilus Minerals (TSX:NUS)(OTCQX:NUSMF)(AIM:NUS) is to raise approximately CAD$34 million through a private placement of common shares to assist with the continued funding of its Seafloor Production System.

The placement will involve the issue of approximately 37.7 million shares to a number of investors at a price of CAD$0.90 per share.

Nautilus President and CEO, Steve Rogers, said the private placement would provide funds to continue the build of the company's Seafloor Production System (the "System") including key pieces of equipment such as the Seafloor Production Tools and Riser and Lift System.

"At the end of June 2012, the major equipment items of the System were 51% complete, and a significant percentage of the sub components have been delivered," said Mr Rogers.

Existing Nautilus strategic shareholders, MB Holdings, Metalloinvest and Anglo American, are participating in the private placement. MB Holdings, through its wholly-owned subsidiary Mawarid Offshore Mining Ltd. ("Mawarid"), has subscribed for 20.0 million shares, increasing its stake to 16.9%, Metalloinvest has subscribed for approximately 8.3 million shares to maintain its interest in Nautilus at 21%, and Anglo American has subscribed for approximately 4.4 million shares on the basis that its stake will be maintained at 11.1%. The subscription numbers and post-closing percentage holdings assume the completion of the private placement as planned. Other large investors have subscribed for the remaining 5.0 million shares to be issued.

Mr Rogers said that there was strong support from the major shareholders for the company to maintain the build program for the System and ensure the realisation of deep sea resource production as an industry.

Under the terms of the agreements, the private placement will be completed in two tranches, with the first closing taking place on August 3, 2012. Nautilus has also increased the anti-dilution right previously granted to Mawarid as part of its 2011 subscription to reflect its new percentage ownership in the company. Mawarid has also been granted the right to nominate a director to the board of Nautilus as long as it maintains its ownership interest in Nautilus at 15% or more. Mawarid's nominee, Dr. Mohamed Al Barwani, is the Chairman of MB Holdings LLC. His appointment will be made effective on closing of the second tranche and receipt of regulatory approval.

The private placement is subject to regulatory approval, including acceptance of the Toronto Stock Exchange. The second closing will take place following receipt of all regulatory approvals. All securities will be subject to the statutory four-month hold period in Canada.

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 completion of the private placement and the Seafloor Production System. We have made numerous assumptions about the material forward-looking statements and information contained herein, including among other things, that the approved project budget is an accurate estimate of the funding necessary to take the project into production and that TSX will accept the private placement including the creation of a new insider, being the principal beneficial owner of Mawarid. 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 project budget is not an accurate estimate of funding required, the private placement is not successfully concluded by some or all parties or that regulatory approval in respect of the private placement is not received. 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 Nautilus' business contained in Nautilus' reports filed with the securities regulatory authorities in Canada.

About Nautilus Minerals Inc.

Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits and is developing its first project at Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver. The company has been granted all necessary environmental and mining permits.

Nautilus also holds approximately 600,000 km2 of highly prospective exploration acreage in the western Pacific; in PNG, the Solomon Islands, Fiji, Vanuatu and Tonga, as well as in international waters in the eastern Pacific.

A Canadian registered company, Nautilus is listed on the TSX:NUS and AIM:NUS stock exchanges and OTCQX:NUSMF. Its corporate office is in Brisbane, Australia. Its major shareholders include Metalloinvest, the largest iron ore producer in Europe and the CIS, which has a 21% holding, global mining group Anglo American, which holds an 11% interest and MB Holdings, an Oman based group with interests in mining, oil & gas, which holds a 9.98% interest.

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

Contact Information

  • Nautilus Minerals Inc. (Toronto)
    Investor Relations
    +1 (416) 551 1100
    investor@nautilusminerals.com
    www.nautilusminerals.com

    Numis Securities Limited
    Alastair Stratton/Stuart Skinner
    Nominated adviser
    + 44(0) 20 7260 1000

    Numis Securities Limited
    James Black
    Corporate broking
    + 44(0) 20 7260 1000

    Dahlman Rose & Co., LLC
    Christopher R. Weekes
    Direct: +1 212 372 5766