Posts: 437
Threads: 179
Joined: Mar 2015
Reputation:
7
06-11-2015, 10:08 PM
(This post was last modified: 06-11-2015, 10:46 PM by admin.)
(the "Company" or "Nautilus") announces that it has agreed to extend by six months the exercise date of the options granted to its joint venture partner in the Solwara 1 Project.
On December 11, 2014, the Company and the nominee of the Independent State of Papua New Guinea, Eda Kopa (Solwara) Limited (a wholly owned subsidiary of Petromin PNG Holdings Limited) (State Nominee) formed a joint venture in respect of the Solwara 1 Project. Under the terms of that joint venture, the State Nominee took an initial 15% interest which is fully funded, with the option to take up to a further 15% interest within 12 months upon paying certain amounts pursuant to a formula described in the agreement (see Links section). The option was exercisable in three 5% lots within 6, 9 and 12 months respectively from the date the joint venture was formed. If the State Nominee does not exercise any of the 5% options within the relevant time period then that option and any subsequent options are deemed to have lapsed.
To facilitate further discussion between the Company and the State Nominee, the Company has agreed to extend the exercise date of the three 5% options by six months respectively.
Posts: 8
Threads: 0
Joined: Jun 2015
Reputation:
0
'seabedmining' pid='59082' datel Wrote:
(the "Company" or "Nautilus" announces that it has agreed to extend by six months the exercise date of the options granted to its joint venture partner in the Solwara 1 Project.
On December 11, 2014, the Company and the nominee of the Independent State of Papua New Guinea, Eda Kopa (Solwara) Limited (a wholly owned subsidiary of Petromin PNG Holdings Limited) (State Nominee) formed a joint venture in respect of the Solwara 1 Project. Under the terms of that joint venture, the State Nominee took an initial 15% interest which is fully funded, with the option to take up to a further 15% interest within 12 months upon paying certain amounts pursuant to a formula described in the agreement (see Links section). The option was exercisable in three 5% lots within 6, 9 and 12 months respectively from the date the joint venture was formed. If the State Nominee does not exercise any of the 5% options within the relevant time period then that option and any subsequent options are deemed to have lapsed.
To facilitate further discussion between the Company and the State Nominee, the Company has agreed to extend the exercise date of the three 5% options by six months respectively.
What are the implications for the project and its timeline? A delay of six months? A pause in the construction of the ship or other engineering efforts?
Posts: 437
Threads: 179
Joined: Mar 2015
Reputation:
7
not all is lost - i guess PNG is out of money - if they wouldn't take the next %, they must not extend the exercise date?!!? - in worst case NUS need money from another source - then Shontel have to show her skills
Posts: 8
Threads: 0
Joined: Jun 2015
Reputation:
0
'seabedmining' pid='59114' datel Wrote:not all is lost - i guess PNG is out of money - if they wouldn't take the next %, they must not extend the exercise date?!!? - in worst case NUS need money from another source - then Shontel have to show her skills
True, but then, the hesitatioin shown by PNG will also make it more difficult for Nautilus to obtain funds from elsewhere... juging by the (non-existing) reaction on this board, howevrer, the situation is not seen as too dire at this point.
However, what will happen if PNG hesitates again or refuses altogether in 6 months' time....? 
Posts: 437
Threads: 179
Joined: Mar 2015
Reputation:
7
more information next week from the AGM - hopefully
Posts: 104
Threads: 28
Joined: May 2015
Reputation:
0
06-12-2015, 03:12 AM
(This post was last modified: 06-12-2015, 03:13 AM by observer.)
While all is not lost this outcome is far from ideal.
My nagging suspicion is that this latest twist is a reflection of divisions within the government or that Papua New Guinea is simply trying to gain some form of advantage. I am not sure whether PNG fully understands how close this delicate venture potentially is to one final and fatal disruption. This could come in the shape of one of the three major investors throwing in the towel at long last - something we all hope won't happen. By persuading Nautilus Minerals to accept an extension of the deadline, Papua New Guinea has maneuvered the company into a somewhat uncomfortable position vis-à-vis its investors who were hoping to see some stability and predictability emerge. Nautilus appears to have had no other choice but accept, in return for the vague hope that six months later the response will be a positive one and more cash will be made available. This again suggests that it is still rather difficult for the company to find other major investors.
Posts: 500
Threads: 159
Joined: Dec 2011
Reputation:
35
Clearly PNG is still interested, otherwise they would have just let the options expire. Can't see how this would impact the schedule at all, given that CEO Johnston has stated they have enough funds to operate for another year.
It's fine either way: if PNG opts in, Nautilus gets the remainder of their funding but at a reduced equity position. If PNG can't find the money in 6/9/12 months then Nautilus will have to raise additional capital, but will retain the considerable revenue from the 15%.
Good day to pick up a few more stealth shares.
Posts: 500
Threads: 159
Joined: Dec 2011
Reputation:
35
'observer' pid='59132' datel Wrote:
This again suggests that it is still rather difficult for the company to find other major investors.
I disagree with this suggestion. It does not reflect on Nautilus' ability to raise money, rather it reflects on PNG's lack of available budget. They (PNG) are investing heavily in LNG and related infrastructure to the tune of $Billions. They don't just have a $120 mil laying around to hand over to Nautilus.
I've made the case in other threads that PNG's investment would easily be a double or triple. But again there are limited funds available and PNG has to prioritize where they invest. No different than you or I, but hardly reflective on Nautilus itself.
Posts: 184
Threads: 16
Joined: Mar 2015
Reputation:
9
"Observer", I've got to admit your overtly negative spin on all things Nautilus is starting to piss me off considering the white glove treatment everyone is giving you. Yes! Of course PNG asking for an extension to come up with the funds shows how utterly incompetent Nautilus is and how its board is made up of con men trying to swindle the general public, how the large investors are about to pull out and how this is all going to fail in every way because it is a possibility mathematically to all scorned investors out there. Although opinion is great and I don't discourage any valid discourse about the company but most posts that people here like are the ones with factual information contained within not just a constant drivel of opinionated hate, negativity and conspiracy towards a company that is consistently reaching and achieving milestone after milestone. With almost $400 million in assets don't you think the "fly by night" aspect for this company has been removed? Long and the short of it... Detlef, how does one say STFU in german, because where maybe, giving it a 1% chance, observer's tone might be getting lost in translation, I don't want mine to be.
Posts: 104
Threads: 28
Joined: May 2015
Reputation:
0
06-12-2015, 04:46 AM
(This post was last modified: 06-12-2015, 05:07 AM by observer.)
'Monk3' pid='59139' datel Wrote:"Observer", I've got to admit your overtly negative spin on all things Nautilus is starting to piss me off considering the white glove treatment everyone is giving you. Yes! Of course PNG asking for an extension to come up with the funds shows how utterly incompetent Nautilus is and how its board is made up of con men trying to swindle the general public, how the large investors are about to pull out and how this is all going to fail in every way because it is a possibility mathematically to all scorned investors out there. Although opinion is great and I don't discourage any valid discourse about the company but most posts that people here like are the ones with factual information contained within not just a constant drivel of opinionated hate, negativity and conspiracy towards a company that is consistently reaching and achieving milestone after milestone. With almost $400 million in assets don't you think the "fly by night" aspect for this company has been removed? Long and the short of it... Detlef, how does one say STFU in german, because where maybe, giving it a 1% chance, observer's tone might be getting lost in translation, I don't want mine to be.
Who is "Detlef"? I haven't seen him posting and I think this board and the optimists in particular should be grateful for anyone who contributes here in a reasonably meaningful manner, and on a regular basis.
This is the reason, I assume, why I am getting what you call the "white glove treatment". Any input, albeit critical from time to time, is still better than the utter absence of discussion. Others seem to have understood this, even though they may share your dislike about my postings.
I am not here to create positive vibes, nor am I on this board, believe it or not, to bash Nautilus Minerals for the fun of it, or drive down the stock price. We all know that our investment is a particularly risky one. Therefore, I feel it is, first and foremost, my duty to identify and analyse developments, factors and news that could help me and possibly some others get a better feeling for the danger level.
|
