SUBSEA mining proponent Nautilus Minerals Inc.has entered into a loan agreement with Deep Sea Mining Finance Ltd formalising a previously disclosed secured structured credit facility of up to US$34 million.

The company, and its wholly-owned subsidiaries Nautilus Minerals Niugini Limited (NMN) and Nautilus Minerals Pacific Pty Ltd, entered into the loan agreement with Deep Sea Mining Finance, pursuant to which the company may continue to receive secured loans from the Lender to fund the company’s working capital requirements and enable the company to continue the advancement of the Solwara 1 Project off the coast of PNG, while the company seeks, with the assistance of its financial advisors, the remaining project financing of up to US$350 million required to complete the development of the Solwara 1 Project.

Pursuant to the Loan Agreement, Nautilus may draw loans, on a monthly basis, which shall bear interest at 8% per annum, payable bi-annually in arrears. Advances of loans will be subject to, among other things, the Deep Sea Mining Finance’s ongoing review and approval of the company’s monthly operational budget.

To date the company has received bridge loans from the Lender in the aggregate principal amount of US$11,250,000. These existing loans have now become loans made under, and subject to the terms of, the Loan Agreement, leaving up to US$22,750,000 in additional loans that may be advanced under the Loan Agreement. All loans have a maturity date of January 8, 2019 (being one year after the date that the first bridge loan was made).

NMN has guaranteed a portion of the loans (equivalent to the amount of the loans invested towards the Solwara 1 Project) and, in support there-of, NMN has granted to the Lender a charge over NMN’s 85% interest in the Solwara 1 Project, subject to receipt of applicable Papua New Guinea governmental and other third party approvals.

NMN has also entered into a general security agreement in favour of the Lender in support of NMN’s guarantee. Nautilus Pacific, a wholly-owned subsidiary of the Company which holds various intellectual property rights including in relation to the Solwara 1 Project, has also guaranteed the loans under the Loan Agreement and, in support thereof, Nautilus Pacific has granted a security interest to the Lender over such intellectual property rights, subject to applicable third party approvals.