The dropping of Solwari I caused the sell-off. The debt shown with the project still due doesn't even include interest. All the cash/income NUSMF has, has to do with getting interest off their cash holdings which came from two places, private placement (dilution) and selling shares (more dilution). They have no other source of income. They turned up the options given to board members, and even non-board members higher, giving them up to 10%, from shareholder's vote from last year when things were a lot rosier, although they already knew they were probably in trouble with Solwari I at that time. When the Russian company pulled out as major co-project, they didn't exactly come clean with why. Suspect NOW the Russians already knew it was a lost cause. But that is all just IMO, which is what you asked for, assuming it was my honesty you were looking for. You might read this part of their financial info they put out this morning, and make decisions to what you feel is right. GLTY.
Nautilus considers that the State has a contractual obligation to pay an amount of approximately $23.5 million in respect of costs incurred in the development of the Solwara 1 Project up to January 2011, and to make pro-rata capital contributions in respect of subsequent Project development costs which, at the end of September 2012 totalled approximately $51.5 million (excluding interest). The State disputes that it is required to meet such obligations at this time. In order to continue the construction of the Seafloor Production System, Nautilus has been forced to carry the State's share of Project development costs to date.
Unfortunately, to date, an agreed commercial resolution with the State has not been achieved and Nautilus believes the avenues for achieving such a resolution within the timeframe that Nautilus could reasonably continue to carry the total development costs for the Project have now been exhausted. In order to preserve capital, Management and the Board of Directors of Nautilus have terminated the construction of its Seafloor Production System. All of the relevant supplier agreements contain provisions for termination without penalty. The Company was also forced to reduce staff numbers with approximately 60 positions made redundant. Terminating the equipment build for the Seafloor Production System includes discontinuing discussions regarding an alternative vessel and associated funding solution. This means there will be a considerable delay in any commencement of production operations and it may also result in an increase in the Project cost. Change of CEO On October 31, 2012 the Company announced that Mr Mike Johnston, Nautilus' Vice President for Strategic Development and Exploration accepted the position of interim President and CEO, effective immediately. After more than four years as President and CEO, Mr Rogers decided to return interstate to be with his family; he will however, remain a non-executive director of Nautilus. With Mr Johnston's appointment on an interim basis, the Nautilus Board intends to undertake a formal recruitment process in order to appoint a permanent President and CEO for Nautilus going forward. Mr Johnston will be considered for this permanent position together with other candidates. With more than 25 years of experience in the mining industry, 11 of which were with Placer Dome, and a further 6 years with Nautilus, Mr Johnston, brings to Nautilus a strong knowledge of the mining industry, people, decision makers, and laws throughout PNG and the Asia-Pacific region. He also has extensive ore reserve and project evaluation experience, a track record of finding ore bodies, and a strong understanding of all aspects of deep sea mining, through his management of Placer Dome's involvement in the Solwara Projects. Nautilus Issues Options and Loan Shares Nautilus has granted 900,000 stock options and issued 200,000 loan shares to its non-executive directors as their full remuneration for 2012. Both the options and loan shares were issued at an exercise price of C$0.91 with 20% vesting every six months over a 3 year period. The company also issued 225,000 stock options and 3,800,000 loan shares to its employees, including officers, as part of the Company?s long term incentive/retention plan. The stock options and loan shares were issued at an exercise price of C$1.01 and vest in 30 months from the date of issue with expiry one year after vesting.
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