Nautilus Minerals Inc. entered into an agreement with Deep Sea Mining Finance Ltd. to formalize a secured structured credit facility of up to US$34 million as it continues to advance its Solwara 1 copper-gold-silver project in Papua New Guinea's territorial waters.
The company and subsidiaries Nautilus Minerals Niugini Ltd. and Nautilus Minerals Pacific Pty. Ltd. will use the funds for working capital and for ongoing development as it works on sourcing remaining project financing of up to US$350 million.
Nautilus Minerals announced the facility in early January when it secured a bridge loan of up to US$7 million, which was expected to become part of a larger facility and forms part of US$11.3 million in bridge loans already received from Deep Sea Mining Finance.
The company said June 11 that the bridge loans have been incorporated into the new loan agreement, leaving US$22.8 million available. It may draw monthly loans, bearing interest at 8% per annum and payable biannually in arrears, with advances subject to various factors including an ongoing review by Deep Sea Mining Finance.
All loans have a maturity date of Jan. 8, 2019. Prior to this, Nautilus Minerals is able to wholly repay the loans by paying 108% of the outstanding principal plus accrued and unpaid interest.
As of late April, Nautilus Minerals expected initial production from the seabed project to be delayed beyond the third quarter of 2019, as previously targeted, due to a lack of funding.
