TSX-listed Nautilus Minerals has obtained an order of the Supreme Court of British Columbia that provides the company protection from its creditors, enabling it to restructure its business and financial affairs.
Prior to the company applying for protection under the Companies Creditors Arrangement Act, Nautlius received a $750 000 loan from Deep Sea Mining Finance, with a credit facility of up to $34-million.
The order by the Supreme Court also authorised Nautilus and two of its subsidiaries to enter into a new interim loan agreement with the lender, to which the lender has agreed to advance the company up to $4-million to fund the company’s ongoing operations and restructuring.
Nautlitus said last week it was evaluating a range of alternatives to recapitalise the company so that the reality of its seafloor mining projects could be achieved. The options could include the sale of Nautilus’ polymetallic nodule business unit and its seafloor massive sulphide business unit.
Nautilus confirmed that it was not bankrupt and remained in possession and control of its business, while continuing to receive support in the form of loans.
To date, Nautilus has received loans from Deep Sea Mining Finance totalling $18-million, bearing interest at 8% a year and mature on March 8.
Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits, with a mining lease over a prospect known as Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver.