Deep Sea Mining Finance provided a $650,000 loan to Nautilus Minerals under the previously announced loan agreement between the company, two of its subsidiaries and the lender, which will provide a secured structured credit facility of up to $34 million.
Nautilus issued an additional 2,792,096 warrants to Deep Sea in connection with the loan. Each such 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.
To date, Nautilus has issued a total of 56,701,028 share purchase warrants to Deep Sea in connection with loans totaling $13.2 million.
Nautilus may draw loans under the agreement on a monthly basis, which will bear interest at 8% per annum, payable bi-annually in arrears. Advances of loans are subject to, among other things, Deep Sea’s ongoing review and approval of the company’s monthly operational budget. All loans have a maturity date of January 8, 2019. Nautilus will be entitled to pre-pay, in whole but not in part, the loans at any time prior to maturity, by paying 108% of the outstanding principal of the loans plus accrued and unpaid interest.
The loans will be used to fund the company’s working capital requirements and advance the Solwara 1 Project while the company seeks, with the assistance of its financial advisors, the remaining project financing of up to approximately $350 million required to complete the project’s development.
Nautilus Minerals is the first deep-sea mining company to explore the ocean floor for polymetallic seafloor massive sulphide deposits.
Follow the story:
Deep Sea Provides $34MM Facility to Nautilus
