PDAC 2016: Conversation starting to change on Nautilus and seafloor mining

Seafloor mining is one of those things that a lot of investors won’t have confidence in until it is actually proven to work. But there is an increasing acknowledgement that could well happen soon.

As Nautilus Minerals Inc., the pioneer of this business, inches closer and closer to an organized start of operations in 2018, chief executive Mike Johnston said the conversation around Nautilus is evolving. In general, people no more doubt this company is ever going to put its mining plan into action. Instead, they just wonder if it will work the way Nautilus hopes.

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“This project is fairly binary to individuals – you either enjoy it or else you don’t,” he said within an interview.

He said investor confidence is building each time Nautilus reaches another milestone. Recently, the organization took delivery of seafloor production tools. Johnston said the preparation from the 230-metre-long vessel can also be going well also it should leave the dock in the middle of next year.

Nautilus still needs more capital to initiate production at its Solwara 1 project in Papua New Guinea. The organization wants to raise another $125 million to $175 million, that is bigger than its market capitalization (about $94 million). Johnston maintained he’s confident Nautilus can raise those funds, that could originate from a combination of sources for example strategic investors, debt, equipment financing along with a royalty. The company has spent about $225 million to date.