Key points
- The special warrant converts on Sept. 11, 2006, into 4,783,163 common shares at a deemed price of $2.86 per share.
- The subscription was deemed paid through Barrick’s conversion of its interest in the Papua New Guinea (Solwara) joint venture.
- Barrick, through subsidiary Placer Dome, has spent over $12.2-million (U.S.) in project expenditures under its farm-in agreement with Nautilus Minerals Nuigini Ltd.
- Upon conversion, Barrick will hold a 9.59-per-cent stake in Nautilus Minerals based on the company’s existing issued capital.
Nautilus Minerals Inc. has today issued to Barrick Gold Corp. a special warrant at a deemed price of $13,679,846.18. The special warrant is convertible at no cost on Sept. 11, 2006, to 4,783,163 common shares, equating to a deemed price of $2.86 per common share. The subscription for the special warrant has been deemed to have been paid by Barrick through the conversion of its interest in the Papua New Guinea (Solwara) joint venture. This closes the transaction that was previously reported in a press release in Stockwatch dated July 10, 2006.
President and chief executive officer David Heydon said that: “Since agreeing to these terms with Barrick and taking control of the project, Nautilus has moved the Solwara 1 deposit to predevelopment status. We have initiated engineering studies of both the offshore mining and land-based, mineral-processing elements of the project and we are now looking at financing options for the development of Solwara 1, whilst scoping long lead-time items such as the mining vessel.”
Barrick, through its subsidiary Placer Dome, has spent over $12.2-million (U.S.) in project expenditures under the farm-in agreement with Nautilus’s subsidiary, Nautilus Minerals Nuigini Ltd.
Based on the existing issued capital of the company, the conversion of this special warrant will result in Barrick holding a 9.59-per-cent stake in the company.
Alex Davidson, Barrick’s executive vice-president of exploration and corporate development, said, “We are pleased to have a significant equity stake in Nautilus so that we can participate in the future upside of this project.”
