The joint venture firm, called the “Vessel JV,” will be owned by the third parties and Nautilus’ subsidiary, Nautilus Minerals Niugini Limited (NMN).
The purpose of the Vessel JV would be to fund the acquisition of the Production Support Vessel (PSV) that Nautilus had previously arranged to be procured through MAC Goliath Pte Ltd, and the integration costs of installing the mining equipment on the PSV.
The Vessel JV would own and operate the fully integrated PSV. The Vessel JV would charter the PSV to the existing Solwara 1 joint venture between NMN and the Independent State of Papua New Guinea’s nominee, Eda Kopa (Solwara) Limited.
As previously disclosed, Nautilus has been notified by the owner of the shipyard, Fujian Mawei Shipbuilding Ltd, where the PSV is being built, that the Shipyard has rescinded the shipbuilding contract between the Shipyard and MAC.
The Shipyard has continued to install components of the Company's seafloor production equipment on the PSV, with the latest being the installation of an operating console in mid-November.
The Company is currently in negotiations with various parties to enable the acquisition of the PSV to facilitate the proposed Vessel JV.
Nautilus is also currently in discussions with Deep Sea Mining Finance Ltd. (the Lender) to extend the maturity date of the existing secured loan facility provided by the Lender, which is currently due on January 8, 2019, in order to allow sufficient time for the Company to progress the transactions discussed above.