Friday, May 27, 2011

Nautilus to raise US$153.32mil for Solwara-1

CANADA's Nautilus Minerals intends to raise US$153.2 million for its deep-water polymetallic mining operation for its Solwara-1 project in the Bismarck Sea through a public offering of shares, The National reports.

The planned offering would be conducted through a syndicate of underwriters led by TD Securities Inc and Credit Cuisse Securities Inc, Nautilus said.

The company said proceeds from the offering would be used to fund the development of the Solwara-1 copper-gold project.

Proceeds would also be used to fund the company's equity contribution associated with the production-support vessel joint venture agreement, and for general working purposes, Nautilus said.

The offering is expected to raise gross proceeds of approximately C$150 million.

The company also will grant the underwriters an  over-allotment option to purchase up to that number of additional common shares equal to 15% of the common shares sold pursuant to the offering.

The option will be exercisable for a period of 30 days following closing of the offer.

The company intends to use the net proceeds from the offering to fund the development of the Solwara-1 project, to fund the company's equity contribution associated with the production support vessel joint venture

agreement and for general corporate purposes.

Final pricing of the offering will be determined in the context of the market prior to the filing of the final short form prospectus.

Nautilus said the common shares would be offered in all provinces of Canada except Quebec by way of a short form prospectus and other jurisdictions outside of Canada pursuant to applicable private placement exemptions.

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