Key points
- Nautilus issued 188,425,531 common shares at 15 cents each, about 27 per cent of the total shares on offer.
- MB Holding Company, through subsidiary Mawarid Offshore Mining, now holds approximately 27 per cent of outstanding shares, down from 28 per cent.
- Metalloinvest Holding (Cyprus) now holds approximately 15 per cent of outstanding shares, down from 21 per cent.
- Following the offering, Nautilus has 622,443,396 issued and outstanding shares, excluding 11,485,000 shares under its share loan plan.
Nautilus Minerals Inc. has received gross proceeds of $28,263,829.65 as a result of the closing of its rights offering through the issuance of an aggregate of 188,425,531 common shares at the subscription price of 15 cents per share, representing approximately 27 per cent of the total shares on offer.
The company’s largest shareholder, MB Holding Company LLC, participated in the rights offering, through its subsidiary, Mawarid Offshore Mining Ltd., by partially exercising its basic subscription privilege. MB, together with its affiliates, now holds approximately 27 per cent (previously 28 per cent) of the company’s outstanding shares. The company’s second-largest shareholder, Metalloinvest Holding (Cyprus) Ltd., together with its affiliates, now holds approximately 15 per cent (previously 21 per cent) of the company’s outstanding shares (in each case excluding outstanding loan shares).
Mike Johnston, Nautilus’s chief executive officer, commented, “We are very appreciative of the support provided by many of the company’s existing shareholders in the current market conditions.”
The net proceeds from the rights offering will be used by the company to advance the construction and development of the company’s seafloor production system and for general working capital requirements, as set forth under use of proceeds in the company’s final prospectus dated Feb. 23, 2016.
On completion of the rights offering, the total number of issued and outstanding shares of the company is now 622,443,396 (excluding the 11,485,000 outstanding shares that have been issued under and remain subject to the restrictions of the company’s share loan plan).
Having provided the company’s shareholders with the opportunity to participate in this significant financing, the company is considering various alternative sources of financing and has commenced discussions with various parties to explore its financing options.
