- Nautilus Minerals Inc. (TSX:NUS - News; AIM:NUS) -
The Government of Papua New Guinea has confirmed that it intends to
take up a 30% stake in the Solwara 1 project in the
Bismarck Sea in Papua New Guinea (PNG).
Nautilus Minerals Inc. will retain a 70% holding in a joint venture to
be established with the PNG Government.
In a letter to Nautilus, PNG Treasurer Peter O'Neill said the Ministerial
Committee on Economic Sectors and the National Executive Council (NEC) had
endorsed a recommendation that the State exercise its rights to 30% equity in
the proposed Mining Joint Venture.
The transaction will involve, among other things, the government
contributing funds to the project in proportion to its interest, including
its share of the exploration and development costs incurred to date.
Nautilus CEO Stephen Rogers said the company welcomed the
participation of the PNG Government.
"We look forward to working closely with the government on Solwara 1, which will generate significant investment for
the economies of New Ireland, East New Britain and PNG. The successful
development of Solwara 1 will pave the way for the
expansion of operations to other seafloor deposits in the future, creating an
exciting growth industry further benefiting PNG," he said.
The Minister has advised that the acquisition of the holding by the
PNG Government remains subject to ratification by the Office of the State
Solicitor. Nautilus will work with the PNG Government to finalise
the joint venture agreement and further information on the financial details
of the transaction will be released within the next two months.
Links
Jan 17, 2011. Nautilus Granted Mining Lease:
http://www.nautilusminerals.com/s/Media-NewsReleases.asp?ReportID=437932
About Nautilus Minerals Inc.
Nautilus is the first company to commercially explore the ocean floor
for polymetallic seafloor massive sulphide deposits and is currently developing its first
project. The Company's main focus is the Solwara 1
Project, which is located in the territorial waters of Papua New Guinea in
the western Pacific Ocean. Nautilus is listed on the TSX and AIM stock
exchanges, and has among its largest shareholders two of the world's leading
international resource companies Anglo American (11.1%) and Teck Resources (6.8%), as well as Metalloinvest,
one of the largest and fastest growing mining and metallurgical holding
companies in Russia, which beneficially owns 21.0% of the Company's issued
shares through Gazmetall Holding (Cyprus) Limited.
Certain of the statements made in this news release may contain
forward-looking statements within the meaning of the United States Securities
Exchange Act of 1934 and forward-looking information within the meaning of
applicable Canadian securities law. Forward-looking statements and
forward-looking information include, but are not limited to statements or
information with respect to the conclusion of the intentions of the PNG
Government. We have made numerous assumptions about the material
forward-looking statements and information contained herein, including among
other things, that the PNG Government will continue to negotiate with
Nautilus and the negotiations will be successfully concluded, that legal
clearance from the Office of the State Solicitor will be forthcoming in due
course in light of the statements regarding the State's intentions as set out
in the letter received by Nautilus from the Minister of Treasury and Finance.
Even though our management believes that the assumptions made and the
expectations represented by such statements or information are reasonable,
there can be no assurance that the forward-looking statement or information
will prove to be accurate. Forward-looking statements and information by
their nature involve known and unknown risks, uncertainties and other factors
which may cause the actual results to be materially different from any future
results expressed or implied by such forward-looking statements or
information. Such risks, uncertainties and other factors include, among
others, the risk that the PNG Government will not continue to negotiate with
Nautilus in good faith or at all and that legal clearance from the Office of
the State Solicitor will not be received. Should one or more of these risks, uncertainties
or other factors materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
forward-looking statements and information. Although we have attempted to
identify factors that would cause actual results to differ materially from
those described in forward-looking statements and information, there may be
other factors that cause actual results, performances, achievements or events
to not be as anticipated, estimated or intended. Also, many of the factors
are beyond our control. There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly you should not place undue reliance on
forward-looking statements or information. Except as required by law, we do
not expect to update forward-looking statements and information as conditions
change and you are referred to the full discussion of the Company's business
contained in the Company's reports filed with the securities regulatory
authorities in Canada.
Neither the TSX nor the London Stock Exchange accepts responsibility
for the adequacy or accuracy of this press release.
Contact:
Investor Relations
Nautilus Minerals Inc. (Toronto)
+1 (416) 551 1100
investor@nautilusminerals.com
www.nautilusminerals.com
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