Key points
- Nautilus held $178.8-million (U.S.) in cash and cash equivalents as at Sept. 30, 2010.
- The Mining Advisory Council recommended to PNG’s minister that the mining lease for Solwara 1 be granted.
- The vessel REM Etive arrived at Solwara 1 and equipment trials are under way ahead of the fourth-quarter mobilization of the ROVdrill3 drilling system.
- Additional licences were granted in Vanuatu and new applications were submitted in PNG, Solomon Islands and Fiji, bringing total tenement area under application or grant to 529,232 square kilometres.
Nautilus Minerals Inc. has released its unaudited consolidated financial results for the third quarter ended Sept. 30, 2010, together with management’s discussion and analysis.
Third quarter 2010 highlights
The company held an equivalent of $178.8-million (U.S.) in cash and cash equivalents on
deposit with major banks as at Sept. 30, 2010.
Exploration activities continued with the preparation for the 2010
drilling program.
Project development advanced, with particular emphasis on sea floor
production tools.
Strategic partner negotiations progressed.
Stephen Rogers, Nautilus’s chief executive officer, commented: “As we enter the final quarter, the company is focused on reaching its target milestones for the year. Enhancing our knowledge of sea floor systems, through the 80-metre capable ROVdrill3 program, is a key milestone together with the ongoing strategic partner discussions.”
Exploration update
Preparations continued for the fourth-quarter mobilization of the ROVdrill3 drilling system to Papua New Guinea (PNG). Ship and drill rig modifications were well under way by quarter-end. Personnel recruitment and training were also advanced according to schedule. Plans for additional geophysical surveys and environmental work to support the drilling results were also finalized. The vessel REM Etive has arrived on location at Solwara 1 and equipment trials are currently under way.
Nautilus continued to expand its tenement holdings during the quarter. Additional licences were granted in Vanuatu, while new applications were submitted in PNG, Solomon Islands and Fiji, bringing the total area under application or grant up to 529,232 square kilometres.
Project development update
The company made good progress with the development of the Solwara 1 project during the quarter.
The company continues to work with the PNG government in relation to the grant of the mining lease (ML). All required review steps have now been completed, and the key PNG government review body, the Mining Advisory Council, has recommended to the minister that the ML be granted.
Soil Machine Dynamics is progressing with the development of the SPTs. Detailed design has advanced, and procurement of key component subassemblies is in process.
Technip USA is progressing with development of the riser and lifting system. Subcomponent bid packages are being prepared so that tenders can be launched as soon as the project build is recommenced.
Technip Oceania Perth Limited has been retained to develop the planning for the equipment integration into the short-listed vessels. Work has focused on refining the equipment control system integration, electrical system integration and detailed operational review of deck layouts for the short-listed vessels.
Strategic partner update
Parallel negotiations continued with two prospective partners. The strategic objective is to provide additional capital for the development of the Solwara 1 offshore production system in conjunction with adding value for the project solution. These negotiations have been extended in an effort to secure the best shareholder value from an overall risk perspective. The target remains to conclude negotiations with a potential partner in the near future.
The financial statements and management’s discussion and analysis have been filed on SEDAR and are also available on the company’s website.
