Nautilus Minerals announced that there may be a delay in the finalisation of funding for the vessel to be used in connection with its Solwara 1 Project and a potential consequential delay to the program for the vessel build. In turn, this may result in a delay to the commencement of operations at Solwara 1.
Nautilus and its strategic partner, Harren & Partner, have been negotiating the terms of third party financing related to the production support vessel for its first development project, Solwara 1, in Papua New Guinea. The vessel is planned to be owned and operated by the joint venture company (Vessel JV) to be formed by the parties.
Harren & Partner has advised that it will no longer be able to contribute the full amount of the equity to the Vessel JV contemplated by the Agreement signed by the parties in April 2011. The change to Harren & Partner’s position, linked to a tightening of banking rules in the current European crisis and the depressed shipping market, may delay the finalisation of the terms of the third party funding and result in a consequential delay to the program for the vessel build.
Harren & Partner and Nautilus continue to work together to resolve the change in funding requirements, which includes evaluating alternative vessel and associated funding solutions.
As at April 30, 2012 Nautilus held US$119.1M in cash and cash equivalents.
[mappress] Subsea World News Staff, June 04, 2012; Image: Nautilus Minerals