| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers N > Headlines for Nautilus Minerals Inc. > News item |
Nautilus Minerals gets CCAA protection from British Columbia court
By Caroline Salls
Pittsburgh, Feb. 22 – Nautilus Minerals Inc. obtained an initial order of the Supreme Court of British Columbia providing it protection from its creditors under the Companies’ Creditors Arrangement Act (Canada) to enable the company to restructure its business and financial affairs, according to a news release.
Shortly before it applied for CCAA protection, Nautilus said it received a $750,000 loan from Deep Sea Mining Finance Ltd. as part of a previous loan agreement that provides for a secured structured credit facility of up to $34 million.
The initial CCAA order also authorized the company and two of its subsidiaries to enter into a new interim loan agreement under which Deep Sea Mining has agreed to advance up to $4 million to fund the Nautilus’s ongoing operations and restructuring.
In connection with the most recent $750,000 portion of the existing loan agreement, the company said Deep Sea Mining waived a requirement for Nautilus to issue share purchase warrants to the lender.
To date, Nautilus has received loans from Deep Sea Mining totaling $18.25 million. The loans bear interest at 8% and have a maturity date of March 8.
The company said it is evaluating a range of alternatives to recapitalize Nautilus so that the reality of its seafloor mining projects can be achieved. The options could include the sale of Nautilus’ polymetallic nodule business unit and its seafloor massive sulfide business unit.
Nautilus said it is not bankrupt and remains in possession and control of its business.
According to the release, the company continues to seek short-term and long-term funding solutions while assessing its options, including various restructuring options. Negotiations with various third parties continue.
Vancouver, B.C.-based Nautilus explores the ocean floor for gold-copper-zinc-silver seafloor massive sulphide deposits.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.