Sea exploration company Nautilus Minerals Inc. entered into a Funding Mandate Agreement with Deep Sea Mining Finance Ltd, a newly incorporated private company in the British Virgin Islands. According to the agreement, the international expertise and financial relationships of two major shareholders of Nautilus Minerals will be used to assist in advancing the development of Solwara 1, the company’s copper-gold project under development.
The BVI company is intended to be 50 per cent owned by USM Finance Ltd, a wholly-owned subsidiary of USM Holdings Ltd, an affiliate of Metalloinvest Holding (Cyprus) Limited , and 50 per cent owned by Mawarid Offshore Mining Ltd., a wholly-owned subsidiary of MB Holding Company LLC.
Deep Sea Mining Finance has been appointed as the exclusive financial advisor of Nautilus, in respect of US$350 million financing needed to complete the development of the Solwara 1 Project. The exclusive right of the BVI-incorporated company may be terminated, however, if it fails to arrange binding commitments in respect of financings of at least US$50,000,000 by December 4, 2017 (Interim Financing). Nautilus will pay to DSMF an initial retainer fee of US$75,000, and an additional fee of US$30,000. Also, it will pay US$350,000 as reimbursement for costs and expenses of DSMF incurred in connection with the Interim Financing.
The agreement will remain in effect until the earlier of January 1, 2019. It is subject to receipt of all necessary approvals from the TSX.