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Press
Release
Mawarid Mining becomes 3rd
largest investor in Nautilus Minerals inc
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.
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