Key points
- Eda Kopa (Solwara) Ltd., a subsidiary of Petromin PNG Holdings Ltd., deposited $113-million (U.S.) into escrow ahead of a July 31 deadline.
- The payment covers the balance of financing for the state nominee’s 15-per-cent share of capital needed to reach first production.
- The escrow follows an April 24, 2014 agreement between Nautilus and the state’s nominee that resolved a prior dispute.
- Nautilus must now secure a production support vessel and certain intellectual property rights for Eda Kopa within six months before the funds are released.
The Independent State of Papua New Guinea’s nominee for participation in Nautilus Minerals Inc.’s Solwara 1 project has placed $113-million (U.S.) into escrow, representing the balance of the financing for the state nominee’s 15-per-cent share of the capital required to complete the development phase of the project up to first production.
On April 24, 2014, the company announced it had resolved the dispute with the state and signed an agreement with the state’s nominee, Eda Kopa (Solwara) Ltd., a subsidiary of Petromin PNG Holdings Ltd., enabling the project to move forward toward production.
Mike Johnston, Nautilus’s chief executive officer, commented, “The fact that the state’s nominee has placed the money into escrow well in advance of the July 31 deadline in the agreement further demonstrates the support the state now has for the project, as we continue to work together as partners in this new deep-sea mining industry.”
With the state’s nominee, Eda Kopa, having paid into escrow the funds for its 15-per-cent interest in the project up to first production, Nautilus must now secure the charter of a production support vessel and secure for Eda Kopa, certain intellectual property rights within six months. The funds will be released to Nautilus on the satisfaction of both conditions.
The company will now focus its attention on securing a suitable vessel arrangement and is continuing its discussions with potential vessel partners, while also undertaking a tender process with shipyards experienced in building offshore construction vessels.
