Key points
- Arbitrator Murray Gleeson, AC QC, found Papua New Guinea breached the state equity option agreement signed in March, 2011, by failing to complete a 30-per-cent purchase in Solwara 1 by Nov. 7, 2011.
- The arbitrator ordered the state to complete the purchase and pay 30 per cent of project expenditure incurred to date within a reasonable time.
- Nautilus has issued a notice requiring completion to occur on Oct. 23, 2013, with the total amount payable estimated at approximately $118-million (U.S.), including interest.
- The arbitrator’s decision is final and binding under the applicable arbitration rules.
NAUTILUS MINERALS AWARDED FAVOURABLE ARBITRATION DECISION
The arbitrator, the Murray Gleeson, AC QC, has issued an award in Nautilus Minerals Inc.’s favour in respect of the issues that were the subject of the notice of arbitration initiated by Papua New Guinea.
The arbitrator’s award includes:
A declaration that the state was in breach of the state equity option
agreement signed by the parties in March, 2011, in failing to complete the
purchase of a 30-per-cent interest in the Solwara 1 project on Nov. 7, 2011;
An order that the state is required to comply with its obligations under
the agreement to complete the purchase of the 30-per-cent interest in the
Solwara 1 project and pay 30 per cent of all project expenditure incurred to
date within a reasonable time after the award.
- A declaration that the state was in breach of the state equity option
agreement signed by the parties in March, 2011, in failing to complete the
purchase of a 30-per-cent interest in the Solwara 1 project on Nov. 7, 2011;
- An order that the state is required to comply with its obligations under
the agreement to complete the purchase of the 30-per-cent interest in the
Solwara 1 project and pay 30 per cent of all project expenditure incurred to
date within a reasonable time after the award.
Nautilus has today issued the state with a notice requiring completion to occur on Oct. 23, 2013. Nautilus estimates the total amount payable by the state at completion to be approximately $118-million (U.S.) (including interest).
Under the applicable arbitration rules the arbitrator’s decision is final and binding.
Nautilus looks forward to bringing the Solwara 1 project into production and will work with the state in order to move the project forward in light of the arbitrator’s award.
The company will hold a conference call and audio/webcast on Thursday, Oct. 10, 2013, at 10 a.m. Eastern Daylight Time.
Conference call details
Dial-in numbers:
International dial-in: 61-2-8524-5042
International dial-in: 61-2-8524-5042
Australia: 1-800-801-825
Australia: 1-800-801-825
Canada: 1-855-842-3490
Canada: 1-855-842-3490
United Kingdom: 0800-0150-9725
United Kingdom: 0800-0150-9725
United States: 1-855-298-3404
United States: 1-855-298-3404
Attendee passcode: 6326079
Attendee passcode: 6326079
If your country dial-in number is not included here please e-mail the company.
A presentation to support the conference call will be posted on the company’s website for download by 9:30 a.m. EDT (Toronto) on Thursday, Oct. 10, 2013.
