Deep Sea Mining Finance will continue to provide bridge loans to Nautilus Minerals. The loans are expected to form part of a larger secured structured credit facility of up to $34 million.
To date, the company has received bridge loans totaling $9.65 million.
The bridge loans will assist the Nautilus’s immediate working capital requirements and facilitate payments required to continue the development of the company’s seafloor production system. The loans bear interest at 8% per annum, payable bi-annually in arrears with a one year maturity date.
Nautilus 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. Deep Sea Mining may subsequently require the loan to be guaranteed by the company’s material operating subsidiaries and secured against the assets of such subsidiaries.
Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits. It holds highly prospective exploration acreage in the western Pacific (granted and under application), as well as in international waters in the Central Pacific.
