Nautilus Minerals Inc. (the “Company” or “Nautilus”) announces that the arbitrator, the Honourable Murray Gleeson AC QC has issued an award in Nautilus’ favour in respect of the issues that were the subject of the Notice of Arbitration initiated by the Independent State of Papua New Guinea (the “State”).
The arbitrator’s award includes:
– a declaration that the State was in breach of the State Equity Option Agreement signed by the parties in March 2011 in failing to complete the purchase of a 30% interest in the Solwara 1 Project on 7 November 2011.
– an order that the State is required to comply with its obligations under the agreement to complete the purchase of the 30% interest in the Solwara 1 Project and pay 30% of all project expenditure incurred to date within a reasonable time after the award.
Nautilus has issued the State with a notice requiring completion to occur on 23 October 2013. Nautilus estimates the total amount payable by the State at completion to be approximately US$118 million (including interest).
Under the applicable arbitration rules the arbitrator’s decision is final and binding.
Nautilus looks forward to bringing the Solwara 1 Project into production and will work with the State in order to move the Project forward in light of the arbitrator’s award.
Press Release, October 04, 2013