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Mawarid Mining becomes 3rd largest
investor in Nautilus Minerals inc.
(9th September, 2011)
Mawarid Mining LLC, a subsidiary of
MB Holding Co. LLC, has subscribed
for 9.98% share of Nautilus Minerals Inc.(Nautilus) a company listed in
Toronto Stock Exchange (TSX).
Mawarid Mining is part of MB Holding
group of companies which has a
presence in over 20 countries with
an employee strength of over 6500.
MB Holding’s business interests
include drilling and integrated
oilfield services, the exploration
and production of oil and gas,
investments, engineering,
manufacturing & trading, and mining
and processing of minerals.
Mawarid Mining will make an
investment of C$ 49 million to
purchase 19.44 million shares, at a
price of C$ 2.52 per share,
equivalent to 9.98% of the increased
share capital of the company.
Nautilus Minerals is raising approx.
US$100 million through a private
placement of common shares by
issuing 39 million shares to a
number of investors at a price of
C$2.52 per share. Under the terms of
the agreements, the allotment will
be completed in two tranches, with
the final closing taking place on
October 6, 2011. The first closing
took place on September 8, 2011,
wherein Mawarid subscribed 50% of
its total shares and the remaining
50% shares will be allotted on final
closing. The shares have been
acquired through a SPV which is a
100% subsidiary of Mawarid Mining.
A company registered in Canada,
Nautilus is listed on the TSX and
AIM stock exchanges and has its
corporate office in Brisbane,
Australia. Nautilus is the first
company to explore the ocean floor
for polymetallic seafloor massive
sulphide deposits and is currently
developing its first development
project at Solwara 1, in the
territorial waters of Papua New
Guinea, where the company is aiming
to produce gold, copper and silver.
The company has been granted all
necessary environmental and mining
permits.Nautilus is intending to
commence operations at the Solwara 1
deposit by end 2013, where it has
identified certain high grade
resource. Funds raised through this
private placement will be utilised
to fund the development of Solwara 1
project.
The company also holds approximately
600,000 square kilometers of highly
prospective exploration acreage in
the western Pacific, in PNG, the
Solomon Islands, Fiji, Vanuatu and
Tonga, as well as in international
waters in the eastern Pacific. Its
major shareholders include
Metalloinvest, the largest
commercial iron ore producer in
Europe and the CIS, which has a 21%
holding, and global mining group
Anglo American, which holds an 11.1%
interest. More details about
Nautilus are available on its
website
www.nautilusminerals.com
Existing Nautilus strategic
shareholders, Metalloinvest and
Anglo American, are also
participating in the private
placement. Metalloinvest has
subscribed for approximately 8.2
million shares to maintain its
interest in Nautilus at 21%, and
Anglo American has subscribed for
approximately 4.3 million shares on
the basis that its stake will be
maintained at 11.1%. Institutional
investors have subscribed for the
remaining 7 million shares to be
issued.
Mawarid Mining is currently engaged
in copper and gold exploration in
Oman, where it operates several open
pit copper mines and processes ore
at its copper concentrate facility
in the Al Batinah region. Investment
in Nautilus is part of a long term
growth strategy where it gives an
opportunity to invest in a unique
and emerging seafloor resource
industry besides geographical
diversification, thereby also
getting the first mover advantage.
MB Group also sees synergies with
Nautilus in drilling as well as
engineering /manufacturing areas.
Mawarid Mining has also been granted
anti-dilution rights to maintain
their % shareholding in Nautilus as
and when any common shares or
securities convertible into common
shares are issued by Nautilus, until
the earlier of the date of
commencement of first production or
February 28, 2014. |
