Photo by: Nautilus Minerals
TORONTO (miningweekly.com) – TSX-listed marine mining hopeful Nautilus Minerals on Friday reported that the State of Papua New Guinea (PNG) had paid $113-million into escrow, representing the balance of the State’s 15% share of capital required to complete the Solwara 1 offshore project up to first production.
At the end of last month Nautilus announced that it had resolved the dispute with the State and signed an agreement with the State’s nominee, Eda Kopa (Solwara) Limited, a subsidiary of Petromin PNG Holdings, enabling the project to move forward toward production.
“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,” Nautilus CEO Mike Johnston said.
With Eda Kopa having paid its share of the project development capital, Nautilus’ focus now shifts to chartering a production support vessel and securing for Eda Kopa certain intellectual property rights within six months. The funds would be released to Nautilus when both conditions had been satisfied.
The company is in discussion with potential vessel partners, while also undertaking a tender process with shipyards experienced in building offshore construction vessels.