Nautilus – which plans to mine copper and gold on the seabed near the Bismarck Sea – has committed US$38.1 million (K94.6m) to contracts for design and building of the seafloor production system.
The Canadian firm has entered into contracts and as at Sept 30, the value reflects ongoing milestone payments for continuing contracts.
It stated in its third quarter report that these contracts were cancellable by Nautilus at any time.
However, in the event of cancellation, the company is liable for any costs incurred up to that point, with an estimate of costs for terminated contracts included in the accrued costs at period end. No other penalties or cancellation fees are payable under these contracts.
In order to maintain the exploration leases, licences and permits in which Nautilus is involved, the company is expected to fulfill the minimum annual expenditure conditions under which the tenements were granted.
The exploration commitments are based on those exploration tenements that have been granted and may increase or decrease depending on whether additional applications are granted, relinquished or form joint ventures in the future.
Based on tenements granted as at Sept 30, total expenditure commitments were US$37.7 million (K93.6m) over the life of the licences, which in the majority of cases extend to a maximum of two years, with the exception of CCZ (Clarion Clipperton Zone) tenements where expenditure commitments extend to five years.
Earlier this month, Nautilus had agreed to charter a 227metre long ship as a floating base for its operations.
The vessel from Marine Assets Corporation’s rate per day is (MAC) US$199,910 (K495,636) for the first five years.
Nautilus’ chief executive Mike Johnston said: “We are excited to achieve this significant milestone and secure a vessel contract with such an experienced vessel provider as MAC”.
The company’s operations are located in countries including Canada, Australia, PNG, Tonga, Solomon Islands, Fiji and New Zealand.
The Canadian firm has entered into contracts and as at Sept 30, the value reflects ongoing milestone payments for continuing contracts.
It stated in its third quarter report that these contracts were cancellable by Nautilus at any time.
However, in the event of cancellation, the company is liable for any costs incurred up to that point, with an estimate of costs for terminated contracts included in the accrued costs at period end. No other penalties or cancellation fees are payable under these contracts.
In order to maintain the exploration leases, licences and permits in which Nautilus is involved, the company is expected to fulfill the minimum annual expenditure conditions under which the tenements were granted.
The exploration commitments are based on those exploration tenements that have been granted and may increase or decrease depending on whether additional applications are granted, relinquished or form joint ventures in the future.
Based on tenements granted as at Sept 30, total expenditure commitments were US$37.7 million (K93.6m) over the life of the licences, which in the majority of cases extend to a maximum of two years, with the exception of CCZ (Clarion Clipperton Zone) tenements where expenditure commitments extend to five years.
Earlier this month, Nautilus had agreed to charter a 227metre long ship as a floating base for its operations.
The vessel from Marine Assets Corporation’s rate per day is (MAC) US$199,910 (K495,636) for the first five years.
Nautilus’ chief executive Mike Johnston said: “We are excited to achieve this significant milestone and secure a vessel contract with such an experienced vessel provider as MAC”.
The company’s operations are located in countries including Canada, Australia, PNG, Tonga, Solomon Islands, Fiji and New Zealand.