Key points
- Nautilus Minerals held $51.3-million (U.S.) in cash and cash equivalents as at June 30, 2016.
- The company completed a rights offering and advanced construction of the production support vessel for the Solwara 1 project.
- Nautilus upgraded and increased its CCZ mineral resource and released a National Instrument 43-101 technical report on polymetallic nodules.
- The company reduced its work force and terminated early-stage seafloor production equipment construction contracts to preserve capital while seeking bridge and project financing.
NAUTILUS MINERALS ANNOUNCES FINANCIAL RESULTS FOR Q2 2016
Nautilus Minerals Inc. has released its unaudited consolidated financial statements for the second quarter ended June 30, 2016, together with management’s discussion and analysis.
2016 significant events:
Advanced the Solwara 1 project;Advanced the construction of the production support vessel;Completed rights offering;Upgraded and increased CCZ mineral resource, and released a National Instrument 43-101
technical report on polymetallic nodules;Announced a change to the board of directors with the appointment of a
new chairman;$51.3-million (U.S.) in cash and cash equivalents as at June 30, 2016.
- Advanced the Solwara 1 project;
- Advanced the construction of the production support vessel;
- Completed rights offering;
- Upgraded and increased CCZ mineral resource, and released a National Instrument 43-101
technical report on polymetallic nodules;
- Announced a change to the board of directors with the appointment of a
new chairman;
- $51.3-million (U.S.) in cash and cash equivalents as at June 30, 2016.
As previously disclosed, the company requires significant additional financing in order to complete the build and deployment of the sea floor production system to be utilized at the Solwara 1 project by the company and its joint venture partner (as to 15 per cent), the independent state of Papua New Guinea’s nominee.
In view of the company’s financing requirements, the company and its operating subsidiaries continue to explore alternatives for securing immediate bridge financing to facilitate the time required to secure the significant additional project financing that is needed and/or to explore alternative transactions aimed at maximizing shareholder value. However, there can be no assurances that the company will be able to obtain the necessary bridge financing or project financing on acceptable terms or at all.
The company has reviewed all aspects of its business during this process and, as result, has implemented certain measures aimed at preserving the company’s capital position. These measures include reducing the company’s work force, terminating contracts for the construction of any sea floor production equipment that was in the early stages of development and not entering into any new construction contracts until the additional financing required is secured.
The company will provide further updates as circumstances warrant.
The financial statements and management’s discussion and analysis will be filed on SEDAR and will be available on the company’s website.
