Key points
- The rights offering will raise gross proceeds of $40 million through 200 million common shares priced at 20 cents each.
- MB Holding Company LLC, a major shareholder, will act as standby purchaser for the full offering through a wholly owned subsidiary, in exchange for a $2-million fee.
- Net proceeds will fund three key contracts for the sea floor production system: production tools from Soil Machine Dynamics Ltd., the subsea slurry lift pump from GE Hydril, and the rigid riser system from General Marine Contractors LLC.
- The offering is subject to regulatory approvals including acceptance by the Toronto Stock Exchange, and management will hold an investor call next week.
NAUTILUS MINERALS FILES PRELIMINARY PROSPECTUS FOR C$40M RIGHTS OFFERING
Nautilus Minerals Inc. has filed a preliminary short-form prospectus within each province of Canada, other than Quebec, in respect of a rights offering to raise gross proceeds of $40-million through the issuance of rights to subscribe for an aggregate of 200 million common shares at a subscription price of 20 cents per common share.
One of the company’s major shareholders, MB Holding Company LLC, through a wholly owned subsidiary, has agreed to act as standby purchaser in respect of the full offering and will purchase all of the common shares that are not otherwise subscribed for under the offering, in consideration for a fee of $2-million.
The net proceeds from the offering will be used by the company to continue financing its three key contracts related to the sea floor production system. The key contracts include the build of the sea floor production tools by Soil Machine Dynamics Ltd., the supply of the subsea slurry lift pump by GE Hydril and the procurement of the rigid riser system by General Marine Contractors LLC. The company believes that continuing with these key contracts will ensure the company is in the best possible position to advance the Solwara 1 project following resolution of the dispute with the State of Papua New Guinea. To that end, the company continues to meet with senior representatives of the state, including national executive council ministers, with a view to amicably resolving the dispute as soon as possible.
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the Toronto Stock Exchange.
Management of the company will hold an investor call next week, the details of which will be provided in due course.
The prospectus is available electronically on SEDAR.
