UPDATE 1-Nautilus to Raise $100 Mln for Offshore Copper Project-Shanghai Metals Market

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UPDATE 1-Nautilus to Raise $100 Mln for Offshore Copper Project

Industry News 10:04:35AM Sep 01, 2011 Source:SMM

Aug 31 (Reuters) - Canada's Nautilus Minerals said it plans to issue shares to raise about $100 million to fund the development of its flagship copper project, off the coast of Papua New Guinea in the Pacific Ocean.

The Toronto-listed company plans to issue about 39 million shares priced at C$2.52 each to fund the development of its flagship Solwara 1 copper-gold project, it said in a statement.

Nautilus' top shareholder, iron ore producer Metalloinvest Holding (Cyprus) Ltd will buy shares so that it keeps its 21 percent stake in the company, while British miner Anglo American will also buy shares to keep its 11 percent stake.

Mawarid Mining LLC, a unit of Muscat-based mining and processing group MB Holding Company LLC, will buy shares worth about $50.1 million to take a 9.98 percent stake in the company, Nautilus said.

Nautilus had $112 million cash reserves as of the end of June and its joint venture partner, Petromin PNG Holdings Ltd -- created by the State of Papua New Guinea to hold the state's assets -- also contributes funds.

That along with the net proceeds of the placement is expected to fund the development of the offshore component of the mining venture, Nautilus said.

Trading in Nautilus's shares were halted for just over an hour pending news.

They were trading up about 1 percent at C$2.83 in afternoon after resuming trade at 12:30 ET on the Toronto Stock Exchange. They have gained 24 percent so far this year.
 

Key Words:  copper project 

UPDATE 1-Nautilus to Raise $100 Mln for Offshore Copper Project

Industry News 10:04:35AM Sep 01, 2011 Source:SMM

Aug 31 (Reuters) - Canada's Nautilus Minerals said it plans to issue shares to raise about $100 million to fund the development of its flagship copper project, off the coast of Papua New Guinea in the Pacific Ocean.

The Toronto-listed company plans to issue about 39 million shares priced at C$2.52 each to fund the development of its flagship Solwara 1 copper-gold project, it said in a statement.

Nautilus' top shareholder, iron ore producer Metalloinvest Holding (Cyprus) Ltd will buy shares so that it keeps its 21 percent stake in the company, while British miner Anglo American will also buy shares to keep its 11 percent stake.

Mawarid Mining LLC, a unit of Muscat-based mining and processing group MB Holding Company LLC, will buy shares worth about $50.1 million to take a 9.98 percent stake in the company, Nautilus said.

Nautilus had $112 million cash reserves as of the end of June and its joint venture partner, Petromin PNG Holdings Ltd -- created by the State of Papua New Guinea to hold the state's assets -- also contributes funds.

That along with the net proceeds of the placement is expected to fund the development of the offshore component of the mining venture, Nautilus said.

Trading in Nautilus's shares were halted for just over an hour pending news.

They were trading up about 1 percent at C$2.83 in afternoon after resuming trade at 12:30 ET on the Toronto Stock Exchange. They have gained 24 percent so far this year.
 

Key Words:  copper project