Nautilus Seeks Partner for Vessel JV
Nautilus Minerals said it is currently negotiating the terms that would involve the creation of a new joint venture company (the “Vessel JV”).
The purpose of the Vessel JV would be to fund the acquisition of the Production Support Vessel (PSV) that Nautilus had previously arranged to be procured through MAC Goliath and the integration costs of installing the mining equipment on the PSV.
The Vessel JV would own and operate the fully integrated PSV. The Vessel JV would charter the PSV to the existing Solwara 1 joint venture between Nautilus and the Independent State of Papua New Guinea’s nominee, Eda Kopa (Solwara) Limited.
As previously disclosed, Nautilus has been notified by the owner of the shipyard, Fujian Mawei Shipbuilding, where the PSV is being built, that the Shipyard has rescinded the shipbuilding contract between the Shipyard and MAC, the contractor engaged by Nautilus to procure the PSV on behalf of Nautilus.
The Shipyard has continued to install components of Nautilus’ seafloor production equipment on the PSV, with the latest being the installation of an operating console in mid-November. The Company is currently in negotiations with various parties to enable the acquisition of the PSV to facilitate the proposed Vessel JV.
Nautilus is also currently in discussions with Deep Sea Mining Finance to extend the maturity date of the existing secured loan facility, which is currently due on January 8, 2019, in order to allow sufficient time for the company to progress the transactions discussed above.