TORONTO, March 05, 2018 (GLOBE NEWSWIRE) -- Nautilus Minerals Inc. (TSX:NUS) (OTC:NUSMF) (Nasdaq Intl
Designation) (the "Company" or "Nautilus") announces that it continues to arrange bridge
loans from Deep Sea Mining Finance Ltd. (the "Lender"), which are expected to form part of a larger secured
structured credit facility of up to US$34 million to be provided by the Lender to the Company.
To date the Company has received bridge loans from the Lender totaling US$6,650,000. In conjunction with the
most recent advance of US$1,900,000, the Company has issued to the Lender an additional 8,161,512 warrants of the Company (the
"Warrants"), for a total of 28,565,291 share purchase warrants issued to the Lender to date. Each Warrant entitles
the Lender to purchase one common share of the Company at a price of C$0.17 for a period of five years from the date of issuance of
the Warrant.
The bridge loans will assist the Company's immediate working capital requirements and facilitate payments
required to continue the development of the Company's seafloor production system to be first utilized at the Company's Solwara 1
Project. The loans bear interest at 8% per annum, payable bi-annually in arrears with a one year maturity date.
The Company will be entitled to pre-pay each loan prior to maturity, by paying 108% of the outstanding principal
of the loan plus accrued and unpaid interest. Each loan is represented by a promissory note and will initially be secured against
the assets of the Company through a general security agreement. The Lender may subsequently require the loan to be guaranteed by
the Company's material operating subsidiaries and secured against the assets of such subsidiaries.
As previously disclosed, the Lender is a private company owned 50% by each of: (i) USM Finance Ltd., a wholly
owned subsidiary of USM Holdings Ltd, an affiliate of Metalloinvest Holding (Cyprus) Limited; and (ii) Mawarid Offshore Mining
Ltd., a wholly-owned subsidiary of MB Holding Company LLC. As the Lender is controlled by two insiders of the Company, the Lender
is a "related party" of the Company and the loan transaction constitutes a "related party transaction" of the Company under MI
61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transactions
comprising the bridge loans and the Warrants will be exempt from the formal valuation and minority shareholder approval
requirements of MI 61-101.
The Company did not file a material change report more than 21 days before the expected closing of this
transaction, as the details of the transaction were not finalized until immediately prior to the closing and the Company wished to
close the transaction as soon as practicable for sound business reasons.
The Company requires significant additional funding in order to complete the build and deployment of the
seafloor production system to be utilized at the Solwara 1 Project by the Company and its joint venture partner (as to 15%), the
Independent State of Papua New Guinea's nominee.
There can be no assurances that the Company will be successful in securing the necessary additional financing
transactions within the required time or at all. Failure to secure the necessary financing may result in the Company undergoing
various transactions including, without limitation, asset sales, joint ventures and capital restructurings.
The Company will provide further updates as circumstances warrant.
Links
http://www.nautilusminerals.com/irm/PDF/1961_0/Nautilusreceivesadditionalbridgeloans
http://www.nautilusminerals.com/irm/PDF/1951_0/Nautilusprovidesfundingupdate
http://www.nautilusminerals.com/irm/PDF/1950_0/Nautilusarrangesbridgeloansandsignsnewfundingmandate
For more information please refer to www.nautilusminerals.com or contact:
Investor Relations
Nautilus Minerals Inc. (Toronto)
Email: investor@nautilusminerals.com
Tel: +1 416 551 1100
The TSX does not accept responsibility for the adequacy or accuracy of this press release.
Certain of the statements made in this news release may contain forward-looking information within the meaning
of applicable securities laws, including statements with respect to the Company's funding requirements, expectations to receive
additional bridge loans and enter into a credit facility, and the continued development of the Solwara 1 Project. We have made
numerous assumptions about such statements, including assumptions relating to the Company’s funding requirements, project funding,
and completion and operation of the Company's seafloor production system. Even though our management believes the assumptions made
and the expectations represented by such statements are reasonable, there can be no assurance that they will prove to be accurate.
Forward-looking information by its nature involves known and unknown risks, uncertainties and other factors which may cause the
actual results to be materially different from any future results expressed or implied by such forward-looking information.
Please refer to our most recently filed Annual Information Form in respect of material assumptions and risks related to the
prospects of extracting minerals from the seafloor and other risks relating to the Company's business and plans for development of
the Solwara 1 Project. Risks related to continuing the Company's operations and advancing the development of the Solwara 1
Project include the risk that the Company will be unable to obtain at all or on acceptable terms, and within the timeframes
required, the remaining financings necessary to fund completion of the build, testing and deployment of the Company's seafloor
production system; that the Company will be unable to rectify or arrange for the rectification of the default under the
shipbuilding contract for the construction of the Production Support Vehicle (as announced on 11 December 2017); and that
agreements with third party contractors for building slots within certain timeframes are not secured as required. As the Company
has not completed a prefeasibility study or feasibility study in respect of the Solwara 1 Project, there can be no assurance that
the Company's production plans will, if fully funded and implemented, successfully demonstrate that seafloor resource production is
commercially viable. Except as required by law, we do not expect to update forward-looking statements and information as conditions
change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the
securities regulatory authorities in Canada.
About Nautilus Minerals Inc.
Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits.
Nautilus was granted the first mining lease for such deposits at the prospect known as Solwara 1, in the territorial waters of
Papua New Guinea, where it is aiming to produce copper, gold and silver. The Company has also been granted its environmental permit
for this site.
Nautilus also holds highly prospective exploration acreage in the western Pacific (granted and under
application), as well as in international waters in the Central Pacific.
A Canadian registered company, Nautilus is listed on the TSX:NUS stock exchange and is also a member of the
Nasdaq International Designation program. Its corporate office is in Brisbane, Australia. Its major shareholders include MB Holding
Company LLC, an Oman based group with interests in mining, oil & gas, which holds a 29.3% interest and Metalloinvest, the largest
iron ore producer in Europe and the CIS, which has a 18.5% holding (each on a non-diluted basis, excluding loan shares outstanding
under the Company’s share loan plan).
