Source: Papua New Guinea Mine Watch
Prospective seabed mining company Nautilus Minerals does not have the US$200 to US$225 million it needs to complete the construction of its giant floating production support vessel. This makes the future of its proposed experimental Solwara 1 mine in Papua New Guinea look increasingly uncertain.
According to the company’s Chief Financial Officer, Shontel Norgate, quoted in an article in the Northern Miner, Solwara 1 requires a total capital expenditure of $383 million but Nautilus is short by US$200 – $225 million. This means it does not have the funds it needs to complete the construction of its support ship.
Nautilus attempted to raise US$100 million in a rights offering in April, but that was a unmitigated disaster. Only 27% of the total shares on offer were sold, raising just $28 million.