Canada: Former Nautilus Minerals Advisory Board Member Joins Michael Bailey’s Takeover Bid

Robbert Gooden the former chief scientific advisor to Nautilus minerals has joined Michael Bailey and his family office solely controlled by him in the commencement of a tender offer for all outstanding shares of common stock of Nautilus Minerals Ltd. for $0.97 per share, net to the seller in cash.

Mr. Gooden is currently the Chairman of Subsea Minerals Ltd. and was a former senior advisory board member to Nautilus Minerals Inc. Mr. Gooden will assume the role of interim chairman of the board at closing.

Under the terms of the tender offer, the family office controlled solely by Michael Bailey will commence a hostile all cash bid to purchase all the outstanding shares of Nautilus Minerals Ltd. for $0.97 CAD per share for an aggregate purchase price of $237.99 million CAD. This represents a 108.6 % premium to the previous day closing price of Nautilus’ stock.

The tender offer is scheduled to expire at 12:00 midnight, Eastern Standard Time, on March 1, 2013, unless the tender offer is extended. The tender offer is conditioned on the tender of a majority of Nautilus’s shares calculated on a fully-diluted basis, as well as the receipt of certain regulatory approvals and other customary closing conditions.

Gannibal Securities has been engaged to act as advisor in this transaction and will negotiate lock up agreements with major Nautilus Minerals shareholders Metalloinvest (21.0%), Anglo American(11.1%), MB Resources(16.9%) and Teck Resources(4.5%). The law offices of Bacchus Law will represent Mr. Bailey in this transaction. The Law firm of Fasken Martineau will no longer be representing Mr Bailey in this transaction due to conflicts of interest with current board members of Nautilus.

The family office controlled solely by Mr.Bailey currently owns a minority stake in the company and is now making a hostile bid to acquire 100% of the outstanding company stock with the intention of taking the company private to finance and execute the underwater mining business plan with Mr. Gooden expert guidance.

Michael Bailey, an experienced investor and resident of Canada is an algorithmic trader and formerly a member of the Band of Scoundrels, an elite group of high frequency proprietary traders that successfully shorted Citigroup and profited over $130M in October 2008.

The acquisition is expected to close March 2013; however, the close date is subject to customary closing conditions, including regulatory review in Canada.

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Press Release, January 10, 2013