Nautilus Minerals Inc. (NUSMF: OTC Link) | Nautilus dispute with the State of PNG


Nautilus dispute with the State of PNG

Jun 01, 2012

OTC Disclosure News Service

Toronto, ONT, Canada – Toronto, Ontario, June 1, 2012 — Nautilus Minerals advises that it is in dispute with the Independent State of Papua New Guinea (the State) as to the parties’ obligations to complete the Agreement entered into on 29 March 2011. Nautilus has initiated the dispute resolution process provided for in the Agreement, which may lead to a referral of the dispute to arbitration if it can not be resolved through further discussions amongst senior representatives of the parties over an initial 10 day period.

The State exercised its option under the Agreement to acquire a 30% interest in the Solwara 1 Project through its nominee, a subsidiary of Petromin PNG Holdings Limited. However, the State asserts that Nautilus has not met certain obligations on which completion is dependent, and that Nautilus has breached the Agreement. Nautilus refutes these assertions.

As previously disclosed, under the Agreement the State’s nominee (Petromin subsidiary) must pay (among other amounts) its share of costs incurred in the development of the Project up to completion to acquire its Project interest (see links section for full press release). Unless and until the dispute is resolved, completion will be delayed or may not occur and Nautilus must continue to carry these costs. This may lead to Nautilus needing to slow or defer the build program for Project equipment, which would have consequential impacts on the scheduled commencement of operations and overall Project costs.
Nautilus will provide a further update, including as to any slowing or deferral of the build program, in due course following any further developments.

Conference Call

A Conference Call and Webcast will be held next week, details of which will be provided in due course.


For more information please refer to or contact:

Investor Relations
Nautilus Minerals Inc. (Toronto)
Tel: +1 (416) 551 1100

Numis Securities Limited
Nominated adviser: Alastair Stratton/Stuart Skinner
Corporate broking: James Black
Tel: + 44(0) 20 7260 1000

Dahlman Rose Co., LLC
Christopher R. Weekes
1301 Avenue of the America’s
New York, NY 10019
Direct: +1 212 372 5766

Neither the TSX, London Stock Exchange, nor the OTCQX accepts responsibility for the adequacy or accuracy of this press release.

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Leave a Reply