TORONTO (miningweekly.com) – TSX-listed marine mining project developer Nautilus Mining has secured a further bridge loan of up to $34-illion from Deep Sea Mining Finance, which is intended to tide the company over until it is able to start undersea mining at its flagship Solwara 1 project, offshore Papua New Guinea (PNG).
To date the company has received bridge loans from the Lender totalling $6.65-million.
Nautilus advised on Monday that in conjunction with the most recent advance of $1.9-million, the company has issued to the lender a further 8.16-million warrants of the company, bringing the total to 28.57-million share purchase warrants. Each Warrant entitles the lender to buy one common share of the company at a price of C$0.17 for a period of five years from the date of issuance.
The bridge loans will assist the company's immediate working capital requirements and facilitate payments required to continue the development of the unique seafloor production system. The loans bear interest at 8% a year, payable bi-annually in arrears with a one-year maturity date.
Deep Sea Mining Finance is a private company owned 50% by USM Finance, which is a subsidiary of USM Holdings - an affiliate of Metalloinvest Holding (Cyprus); and Mawarid Offshore Mining, a subsidiary of MB Holding Company, which constitute two insiders of the company.
Solwara is fully permitted, however, Nautilus still needs to raise $243-million to meet the expected upfront capital requirement.