NIA believes that Nautilus Minerals Inc. (TSX: NUS) could be our greatest gold discovery of all time! A major new development was just announced very late last night regarding NUS that we will get into in a minute.
NUS could make many NIA members very wealthy during hyperinflation. NUS is set to start up production at the world’s first offshore gold and copper mine as early as the second half of 2013. NUS has an area under title that is approximately one and a half times the size of the State of California or approximately two times the size of the UK.
At 2:55PM EST yesterday afternoon, NIA announced NUS at $2.59 as its new favorite gold stock suggestion for the next three years! NUS finished the day up 18% to $2.95 on its highest volume since January, making it the third largest percentage gainer of the day in Canada!
NUS's market cap is now $459 million and the company has $165 million in cash and no debt. Approximately $60 billion worth of oil is produced offshore each year from deep ocean drilling in U.S. federal waters alone. NUS is set to become the world's first and only company to produce precious and base metals from the same type of deep ocean drilling that has revolutionized how the oil industry produces oil! That's right, NUS will be first to market in an entirely new industry!
The ocean covers 71% of the earth's surface. Many top experts believe that most of the world's precious and base metal resources exist under the ocean. NUS is the only company in the world with the technology to produce gold, silver, copper, and zinc, from deep ocean drilling!
At 10:41PM EST last night, NUS announced a huge new joint venture with shipping giant Harren & Partner to build the world's best ever state of the art Production Support Vessel, which will allow NUS to make history by leading a new frontier of seafloor gold, silver, copper, and zinc mining!
Harren has completed preliminary design for the $167 million vessel, a multi-purpose dry cargo ship classed by Germanischer Lloyd. It has a length of 208m, beam of 40m, a deadweight capacity of approximately 18,800 tonnes and a speed of 17 knots. The vessel will house generator sets producing 30MW of power for the vessel, seafloor production tools and associated pumping machinery, and will have on-board accommodation for up to 160 people, including 30 maritime crew. The vessel is to be built at a German shipyard.
The vessel will serve as the operational base for NUS to produce high grade gold and copper at its first development project, Solwara 1, in the Bismarck Sea of Papua New Guinea (PNG).
The vessel will be the floating platform for the mobilisation and remote operation of production machinery operating on the seafloor at water depths of approximately 1,600 metres. The seafloor production tools will cut and gather ore, which will be pumped in slurry form to the vessel, where it will be processed through a dewatering plant before transfer to barges for transport and subsequent treatment.
Under the terms of the strategic partnership, Harren will design and construct the vessel at a cost of approximately $167 million, with delivery scheduled for the first half of 2013. On delivery, the vessel will be sold to the joint venture company in which Harren will hold a 50.01% interest and NUS will hold the remaining 49.99% interest through a holding company. The PNG government, through its wholly owned company Petromin PNG Holdings Ltd (Petromin), will own a 5% stake in NUS's holding company.
NUS recently created a separate mining joint venture company with the PNG government, of which NUS owns 70% and the PNG government's Petromin owns 30%. The mining joint venture company (70% NUS/30% Petromin) will charter the vessel from the vessel joint venture company (50.01% Harren/49.99% NUS) at an average daily rate of $70,000.
Funding for the vessel joint venture company will come from $99 million in bank debt to be procured by Harren, $21 million in equity and loans from Harren, $42 million in equity and loans from NUS, and $5 million from Petromin.
Once in production, NUS projects Solwara 1 to produce around 150,000-200,000 ounces of gold and 80,000 tonnes of copper on an annual basis. That equals approximately $1 billion in potential annual revenues based on current gold and copper prices! Imagine where gold and copper prices will be in 2013.
NUS is a company that NIA believes could be worth tens of billions of dollars later this decade. NUS's three largest shareholders are already worth over $10 billion each: Anglo American (AAUKY), a $62 billion mining company, owns 11.1% of NUS. Teck Resources (TCK), a $31 billion mining company, owns 6.8% of NUS. Metalloinvest, Russia’s largest iron ore miner (worth an estimated $12.5 billion), owns 21% of NUS.
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