An anonymous director reports
NAUTILUS PART PAYS CHARTERER'S GUARANTEE
Nautilus Minerals Inc. has prepaid $10-million (U.S.) of the $18-million (U.S.) charterer's guarantee that was to be provided to Marine Assets Corp. (MAC) on the commencement of the charter of the vessel, which is to be first deployed for use at the company's Solwara 1 project.
Under the terms of the company's vessel charter agreement with MAC, the company agreed to pay MAC a $10-million (U.S.) deposit after the contract for the construction of the vessel between MAC and Fujian Mawei Shipbuilding Ltd. became effective by the payment of the first instalment in late November, 2014.
In December, 2014, it was discovered that the company and MAC had been victims of a cyberattack by an unknown third party and as a result, the company paid the deposit to a bank account which it believed to be MAC's, but which MAC has advised was not its account.
The matter was promptly referred to the police authorities in the relevant jurisdictions and an investigation is under way. The company has also engaged a cybersecurity firm to ensure the continuing security of its and MAC's networks, and to investigate the source of the cyberattack. MAC and the company are co-operating with each other and the authorities to facilitate the timely resolution of the investigations.
In the circumstances, the company has agreed to prepay $10-million (U.S.) of the charterer's guarantee on the basis that: the remaining $8-million (U.S.) of the charterer's guarantee will be provided to MAC by the company on the commencement of the charter of the vessel; and the parties have agreed to determine how to proceed in relation to the deposit following the conclusion of the investigations, which may take some months.
In the meantime, the construction of the vessel continues in accordance with the terms of the shipbuilding contract and the company continues to progress all aspects of the Solwara 1 project, so that it can achieve its goal of making seafloor mining a reality by early 2018.
We seek Safe Harbor.
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