The company announced on Monday that it has arranged for US$7 million to assist its immediate working capital requirements and facilitate payments required to continue the development of the seafloor production system.
The seafloor production system will be first utilized at the Solwara 1 Project outside New Ireland Province.
Nautilus says the bridge loans are expected to form part of a larger secured structured credit facility of up to US$34 million (K104 million) to be provided by the lender on terms currently being negotiated.
Nautilus however says there can’t be any assurance that they will be successful in concluding the larger credit facility transaction or that any further funding will be secured.
In conjunction with initial advances under the bridge loans, Nautilus issued to Deep Sea Mining Finance, 3,221,649 warrants.
Each warrant entitles Deep Sea Mining Limited to purchase one common share of the Nautilus at a price of C$0.17 (36 toea) for a period of five years from the date of issuance.
The announcement of the bridge loans comes after the resignation of Russel Debney as Chairman and Director on December 27th, 2017.
Since September Nautiluas had been seeking additional financing to complete the development of the seafloor production system, twice pushing back the deadline.
Meanwhile Nautilus has appointed M. Horn & Co. Ltd as its Financial Adviser for a period of two years.