Nautilus Minerals received a loan from Deep Sea Mining Finance in the principal amount of $500,000 under its previously announced loan agreement, which provides for a secured structured credit facility of up to $34 million.
Pursuant to the agreement, Nautilus issued an additional 2,147,766 company warrants to Deep Sea in connection with the new loan. Each such warrant entitles Deep Sea 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 75,171,816 share purchase warrants in connection with loans totaling $17.5 million. Share purchase warrants are issued on the basis of one warrant for each $0.2328 of principal amount of loan advanced.
The loans bear interest at 8% per annum, payable bi-annually in arrears, and have a maturity date of February 8, 2019.
Nautilus continues to assess its options, including various restructuring options. Any transactions will be subject to all necessary stock exchange, third party and government approvals, as well as compliance with all other regulatory requirements. The Company will provide further updates as circumstances warrant.
Deep Sea is a private company owned 50% each by USM Finance and Mawarid Offshore Mining and is indirectly controlled by affiliates of the Nautilus’ two largest shareholders.
