Key points
- Governor-General Michael Ogio signed the agreement in Port Moresby with Nautilus CEO Stephen Rogers and Petromin managing director Joshua Kalinoe present.
- Nautilus retains 70 per cent of an unincorporated joint venture holding the project’s mining assets, with the government’s 30 per cent held through Petromin PNG Holdings Ltd.
- The government’s initial payment will be approximately $20-million to $25-million (U.S.), covering its share of exploration and development costs to the January 2011 mining lease grant, due by Aug. 1, 2011.
- The government also took a 5-per-cent interest in a separate services joint venture with Nautilus and made an initial deposit of $1.8-million (U.S.) toward that stake.
The government of Papua New Guinea (PNG) has signed an agreement and exercised its option to take up a 30-per-cent stake in Nautilus Minerals Inc.’s Solwara 1 project in the Bismarck Sea.
Governor-General Michael Ogio signed the agreement at a short ceremony attended by Nautilus chief executive officer Stephen Rogers and Petromin managing director Joshua Kalinoe in Port Moresby, PNG, today.
Nautilus will retain a 70-per-cent holding in an unincorporated joint venture to be established with the PNG government to hold the mining assets of the project. The government’s 30-per-cent share of the joint venture will be held in Petromin PNG Holdings Ltd., the government-owned company established to hold the state’s mining and petroleum assets.
The government’s initial payment to secure its holding will be approximately $20-million (U.S.) to $25-million (U.S.), which represents its share of the exploration and development costs incurred up to the date of grant of the mining lease in January, 2011. The final amount will be determined through an audit process, with payment to be made by Aug. 1, 2011. In future, Petromin will contribute funds to the project in proportion to its interest.
The government also has taken a 5-per-cent interest in a separate joint venture holding company to be formed with Nautilus to provide services in the form of people and equipment to the project, and has made an initial deposit of $1.8-million (U.S.) as part payment for that interest.
Nautilus chief executive officer Stephen Rogers said the company welcomed the participation of the PNG government.
“This step represents a major vote of confidence in Nautilus Minerals and the Solwara 1 project. Through its equity partnership, the government will provide a significant capital investment and will retain a direct interest in the long-term success of the project. We look forward to working closely with the state and Petromin on Solwara 1, which will generate significant investment for the economies of New Ireland, East New Britain and PNG,” he said.
