Nautilus Lines Up US$60M

Vancouver — Following a number of recent major financings, Nautilus Minerals (NUS-V, NUSMF-O) looks to further build its treasury by lining up a US$60-million private placement earmarked for work on its Solwara seafloor metal projects off the coast of Papua New Guinea.

The brokered financing, led by Salman Partners and including TD Securities, BMO Capital Markets, GMP Securities, Blackmont Capital and Westwind Partners, will be on a best-efforts basis.

Units, yet to be priced, will consist of a share plus a half-warrant with each full warrant exercisable at 130% of the unit offering price for 24 months. The broker syndicate will be given an overallotment option to boost the financing up to US$75 million. Nautilus expects the offering to close in late February.

The company also recently engaged the London-based investment firm Numis Securities as advisor and broker in its proposed Alternative Investment Market (AIM) listing on the London Stock Exchange early this year.

Additionally, Nautilus plans to raise at least US$100 million in a private placement brokered through Numis.

The seafloor exploration company recently closed almost US$100 million in financings that saw major mining companies Anglo American (aauk-q, aal-l) and Teck Cominco (TCK.B-T, TCK-N) take significant equity positions of 10.1% and 9.2%, respectively.

Shares of Nautilus recently closed around $5.65. With 82.2 million shares outstanding, it posts a market capitalization of about $464 million. The stock has a 52-week trading range of $1.84-$7.39.

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