Is the production support vessel already fully funded or not?

[observer]

Monk wrote in another thread:

You don't even know that the PSV is fully funded, therefore one would have to extrapolate that you don't even know that the vessel is currently being built.  That is a pretty huge thing to not know about and yet you are able to warn current and and future stockholders away from Nautilus. 

In their most recent press release about the rights offering, Nautilus Minerals state:

In order to complete the entire Seafloor Production System for initial deployment and testing operations, including integration of the Company's equipment into, and completion of, the production support vessel, Nautilus will need to obtain additional funding in excess of the maximum proceeds that can be raised under the rights offering.

Is the construction of the PSV already fully funded at this point or not? I have no problem to admit that I was wrong, however I am very interested in getting to the bottom of this.

[Carthum236]

From my research, funding of the PSV is 2 fold. The company has agreed to pay a 18 mil dollar guarantee of which 10mil has already been paid. Per the press release in Feb 2015, the remaining 8 mil will be due at the commencement of the charter. As Nautilus is going to be chartering the vessel (at a rate of around $200K per day), MAC is picking up the rest of the bill. So is the PSV paid for? Yes and No.

http://www.nautilusminerals.com/IRM/PDF/...sguarantee

"Toronto Ontario, February 2, 2015 - Nautilus Minerals Inc. (TSX:NUS, OTCQX: NUSMF) (Company or Nautilus) announces it has pre-paid US$10M of the US$18M charterer’s guarantee that was to be provided to Marine Assets Corporation (MAC) on the commencement of the charter of the vessel, which is to be first deployed for use at the Company’s Solwara 1 Project.... In the circumstances, the Company has agreed to pre-pay US$10M of the charterer’s guarantee on the basis that: (i) the remaining US$8M of the charterer’s guarantee will be provided to MAC by the Company on the commencement of the charter of the vessel; and (ii) the parties have agreed to determine how to proceed in relation to the Deposit following the conclusion of the investigations, which may take some months."

Also from the initial press release of the vessel charter

http://www.nautilusminerals.com/IRM/PDF/...selCharter

" Under the terms of the arrangement, MAC will enter into a contract with Fujian Mawei Shipbuilding Ltd., based in Fujian province in south-eastern China, to design and construct the vessel in accordance with Nautilus’ specifications (Shipbuilding Contract). The Shipbuilding Contract is expected to be signed by no later than 28 November 2014. A US$10M deposit is payable by Nautilus to MAC following the payment by MAC of the first installment under the Shipbuilding Contract. A further charterer’s guarantee of US$18M will be provided to MAC by the Solwara 1 JV on the commencement of the charter of the vessel."

I noticed something else in the prospectus as well that I feel is relevant. By achieving 50% funding in the rights offering, they will be able to fully fund the dewatering plant. Would this be considered a part of the PSV or the seafloor production tools? I concede that they are all related to the same overall system but who is picking up the bill for the other PSV systems that have been announced? MAC or NM? On the companies page for Status of Equipment, the dewatering plant is not even listed. Do we know of any other major equipment systems that are not funded?

[observer]

From my research, funding of the PSV is 2 fold. The company has agreed to pay a 18 mil dollar guarantee of which 10mil has already been paid. Per the press release in Feb 2015, the remaining 8 mil will be due at the commencement of the charter. As Nautilus is going to be chartering the vessel (at a rate of around $200K per day), MAC is picking up the rest of the bill. So is the PSV paid for? Yes and No.

http://www.nautilusminerals.com/IRM/PDF/...sguarantee

"Toronto Ontario, February 2, 2015 - Nautilus Minerals Inc. (TSX:NUS, OTCQX: NUSMF) (Company or Nautilus) announces it has pre-paid US$10M of the US$18M charterer’s guarantee that was to be provided to Marine Assets Corporation (MAC) on the commencement of the charter of the vessel, which is to be first deployed for use at the Company’s Solwara 1 Project.... In the circumstances, the Company has agreed to pre-pay US$10M of the charterer’s guarantee on the basis that: (i) the remaining US$8M of the charterer’s guarantee will be provided to MAC by the Company on the commencement of the charter of the vessel; and (ii) the parties have agreed to determine how to proceed in relation to the Deposit following the conclusion of the investigations, which may take some months."

Also from the initial press release of the vessel charter

http://www.nautilusminerals.com/IRM/PDF/...selCharter

" Under the terms of the arrangement, MAC will enter into a contract with Fujian Mawei Shipbuilding Ltd., based in Fujian province in south-eastern China, to design and construct the vessel in accordance with Nautilus’ specifications (Shipbuilding Contract). The Shipbuilding Contract is expected to be signed by no later than 28 November 2014. A US$10M deposit is payable by Nautilus to MAC following the payment by MAC of the first installment under the Shipbuilding Contract. A further charterer’s guarantee of US$18M will be provided to MAC by the Solwara 1 JV on the commencement of the charter of the vessel."

I noticed something else in the prospectus as well that I feel is relevant. By achieving 50% funding in the rights offering, they will be able to fully fund the dewatering plant. Would this be considered a part of the PSV or the seafloor production tools? I concede that they are all related to the same overall system but who is picking up the bill for the other PSV systems that have been announced? MAC or NM? On the companies page for Status of Equipment, the dewatering plant is not even listed. Do we know of any other major equipment systems that are not funded?

Thanks for pulling together this information, this is very helpful. I think it is fair, then, to say that MAC represents a crucial link in the chain. Their financial well-being should therefore be of interest to Nautilus shareholders, too. I don't want to sound harsh or disrespectful, but I can't help having a bad gut feeling when surfing on their website. To me, this company, its track record, credentials, management, workforce, financials continue to be a big black box. I sincerely hope that one day in the not too distant future I will be able to laugh about these concerns.