Nautilus Gets Additional Bridge Loans
Nautilus Minerals continues to arrange bridge loans from Deep Sea Mining Finance.
The bridge loans 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.
Mike Johnston, Nautilus’ CEO, said: “We are very pleased with ongoing support we are receiving from our largest shareholders with these bridge loans. We also continue to work with M. Horn & Co. Ltd., in respect of the remaining project financing of up to US$350 million required to complete the development of the Solwara 1 Project.”
To date the company has received bridge loans from the lender totaling US$4,750,000. In conjunction with the most recent advance of US$2,000,000, the company has issued to the lender an additional 8,591,065 warrants of the company, for a total of 20,403,779 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, which the company expects to be in the aggregate amount of up to US$7 million, 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 will be 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.
