Nautilus Minerals Inc. said Jan. 8 that it must secure a loan or another source of funding by Jan. 14 to continue operations.
Nautilus agreed with Deep Sea Mining Finance Ltd. to extend the maturity of the existing secured loan facility of up to US$34 million for 30 days to Feb. 8. The facility was due Jan. 8.
The company is in discussions with an arm's-length party to secure a US$5 million loan.
In the meantime, Nautilus continues talks with arm's-length third parties to establish a new joint venture company and on related transactions for a long-term funding solution.
The joint venture will be owned by the third parties and Nautilus subsidiary Nautilus Minerals Niugini Ltd. and aims to acquire a production support vessel for the Solwara 1 copper-gold-silver project off the coast of Papua New Guinea.
There can be no assurances that the company will be able to negotiate definitive agreements or secure the necessary funding.