Key points
- Harren & Partner told Nautilus it can no longer contribute the full equity amount agreed under their April 2011 vessel joint venture agreement.
- The change is linked to tightening European banking rules and a depressed shipping market.
- Nautilus and Harren & Partner are evaluating alternative vessels and financing solutions.
- As at April 30, 2012, Nautilus held $119.1-million (U.S.) in cash and cash equivalents.
NAUTILUS IDENTIFIES POTENTIAL DELAY TO VESSEL BUILD
Nautilus Minerals Inc. may encouter a delay in the finalization of financing for the vessel to be used in connection with its Solwara 1 project, and a potential consequential delay to the program for the vessel build. In turn, this may result in a delay to the commencement of operations at Solwara 1.
Nautilus and its strategic partner, Harren & Partner, have been negotiating the terms of third party financing related to the production support vessel for its first development project, Solwara 1, in Papua New Guinea. The vessel is planned to be owned and operated by the joint venture company (vessel JV) to be formed by the parties.
Harren & Partner has advised that it will no longer be able to contribute the full amount of the equity to the vessel JV contemplated by the agreement signed by the parties in April, 2011. The change to Harren & Partner’s position, linked to a tightening of banking rules in the current European crisis and the depressed shipping market, may delay the finalization of the terms of the third party financing and result in a consequential delay to the program for the vessel build.
Harren & Partner and Nautilus continue to work together to resolve the change in financing requirements, which includes evaluating alternative vessels and associated financing solutions.
As at April 30, 2012, Nautilus held $119.1-million (U.S.) in cash and cash equivalents.
Conference call
A conference call and webcast will be held next week, details of which will be provided in due course.
