Nautilus Minerals Inc (TSX: NUS; OTC: NUSMF) says it has arranged bridge loans from Deep Sea Mining Finance Ltd, which are expected to form part of a larger secured structured credit facility of up to $US34 million.
Nautilus said this week that to date it has received bridge loans from Deep Sea totalling $US6.65 M. In conjunction with the most recent advance of $US1.9 M the company has issued the lender an additional 8,161,512 warrants of the company, for a total of 28,565,291 share purchase warrants issued to the lender to date.
Each warrant entitles Deep Sea to purchase one common share at $C0.17 within five years of issuance of the warrants.
The bridge loans will help advance development of the Solwara-1 seafloor massive sulphides project in Papua New Guinea’s Bismarck Sea.
The loans bear interest at 8% per annum, payable bi-annually.
Nautilus could pre-pay each loan prior to maturity, by paying 108% of the outstanding principal plus accrued and unpaid interest.
Deep Sea is a private company owned 50% by USM Finance Ltd, a subsidiary of USM Holdings Ltd, an affiliate of Metalloinvest Holding (Cyprus) Ltd; and Mawarid Offshore Mining Ltd., a subsidiary of MB Holding Company LLC. Both of these companies are major shareholders in Nautilus.
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