Nautilus Minerals Inc. ended 2011 in a solid financial position with US$149.4 million in cash and cash equivalents, after a milestone year which saw the Company granted the first deep sea “hard rock” Mining Lease for its Solwara 1 project in the Bismarck Sea, Papua New Guinea.
The Company today released its 2011 full year financial results and Annual Information Form.
Nautilus delivered several key achievements during the year, with the highlights being:
– Mining Lease ML154 (the area containing Solwara 1) granted by the PNG government for subsea production in the Bismarck Sea
– Agreement to form a mining joint venture with the State of PNG for the Solwara 1 project
– Agreement to form a vessel joint venture with Harren & Partner to own and operate a production support vessel
– Nautilus awarded exploration tenements in the Eastern Pacific and Fiji
– C$98.1 million raised in private placement of common shares
– Increased mineral resources at Solwara 1 and a declared maiden inferred resource at nearby Solwara 12
– Continued progress and development advances for the Solwara 1 project
Since the year end, the Company has continued to work with the PNG Government and Petromin PNG Holdings, a company wholly owned by the State of PNG, to finalise contracts and financing arrangements for Petromin’s 30% holding in the Solwara 1 project.
At year’s end the company reported a loss of US$34 million, with total expenses of US$35.0 million, including US$14.2 million in exploration costs, and general & administrative expenses of US$17.2 million. Total assets increased to US$282.6 million with the capitalization of expenditure for mineral properties following the grant of the Mining Lease and the increase in assets under construction. The cash and cash equivalents balance was also positively impacted by the receipt of funds from the private placement in Q4 2011.
“Nautilus achieved several milestones in 2011 that has positioned the Company well to reach its production target in Q4 2013,” said Nautilus CEO Stephen Rogers .”2012 is going to be another productive year as equipment takes shape on the project, the treatment and marketing route is finalised and we continue our exploration work in the Bismarck Sea and other areas to build the production pipeline.”
[mappress] Subsea World News Staff , March 27, 2012; Image: Nautilus Minerals