Key points
- MAC and Fujian Mawei Shipbuilding Ltd. (FMSL) signed the shipbuilding contract on Nov. 25, 2014, at a ceremony at the FMSL yard attended by Fujian executive vice-governor Zhang Zhinang and PNG ambassador to China Christopher Mero.
- MAC has since paid FMSL the first instalment on the vessel, which will first be deployed at the Solwara 1 project.
- Completion of Eda Kopa (Solwara) Ltd.’s purchase of a 15-per-cent interest in the project is scheduled for Dec. 11, 2014, at which point the Solwara 1 JV will be formed.
- Nautilus CEO Mike Johnston said the signed shipbuilding contract and first instalment payment now allow release of the escrowed funds and formation of the joint venture.
Under the terms of
Nautilus Minerals Inc.’s agreement with the nominee of the independent state of Papua New Guinea, the sum of $113-million (U.S.), which was placed into escrow in May, 2014, shall be released to Nautilus on completion of the agreement, which is scheduled to take place on Dec. 11, 2014.
On Nov. 6, 2014, Nautilus announced that it had entered into an agreement with Marine Assets Corp. for the charter of a vessel, to be first deployed for use at the Solwara 1 project. Under the terms of this arrangement, MAC was to sign a contract with Fujian Mawei Shipbuilding Ltd. for the design and construction of the vessel and pay the first instalment of the purchase price by no later than Nov. 28, 2014.
At a signing ceremony held at the FMSL yard on Nov. 25, 2014, and attended by the executive vice-governor of Fujian province, Zhang Zhinang, and the Papua New Guinea ambassador to China, Christopher Mero, MAC and FMSL signed the shipbuilding contract, and MAC has subsequently paid FMSL the first instalment.
Completion of the purchase of a 15-per-cent interest in the project by the state’s nominee, Eda Kopa (Solwara) Ltd., will now proceed in accordance with the agreement. The state nominee and Nautilus have agreed that completion will occur on Dec. 11, 2014, at which time the funds held in escrow (being the $113-million (U.S.)) will be released to Nautilus, and the joint venture between the parties in respect of the project (Solwara 1 JV) shall be formed. Following completion, a formal celebration will be held and attended by senior state government ministers and bureaucrats to mark this significant milestone for the project.
Mike Johnston, Nautilus’s chief executive officer, commented, “We are excited that the shipbuilding contact has been signed for the construction of the vessel and the first instalment paid, which now allows for the release of the state nominee’s funds from escrow and the formation of the Solwara 1 JV.”
Nautilus looks forward to working closely with the state nominee on the project, which will generate significant economic activity within the state and the province of New Ireland.
