The Asia Miner

OCT-DEC 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 27 of 75

26 | ASIA Miner | Volume 13 • Issue 4 | 2016 Papua New Guinea REPRESENTATIVES of new Coppermoly investor Ever Leap Ser- vices have visited the company's New Britain to familiarise them- selves with the company's two main tenements – Nakru and Simuku . The visitors also assessed the potential to apply their con- siderable engineering and mining expertise to further development of the properties . Coppermoly says that the trip was very successful with all parties enthused by the potential of the tenements . Ever Leap is the company's largest shareholder after investing $2.5 million in the first half of 2016 and is a purposely established project company, which is a wholly-owned subsidiary of Shanxi Xierun Investment Limited. Shanxi Xierun is a diversified private in- vestment company, with significant interests in various civil engi- neering and infrastructure projects China and bauxite mines in the Shanxi region . Shanxi Xierun is controlled by interests associated with Yu Chao, a qualified senior engineer with more than 20 years of experience in the construction and mining industries . Coppermoly director Dr Wanfu Huang said, "This is a great out- come for Coppermoly as it secures funding in a very difficult cap- ital market for junior exploration companies. This funding will allow Coppermoly to get back on the ground in PNG and concentrate its efforts on its major projects." As part of the PNG trip Coppermoly's representatives met with potential drill contractors for an upcoming exploration program at Nakru . Advanced preparations for the planned program include up to 10 drill holes concentrating on the Nakru 1 and adjacent Nakru 2 prospects where drilling in 2014 intersected high grade near-sur- face copper mineralisation . It is expected that the program will be started by the end of the year . During the June 2016 quarter the company made several visits to its main tenements to maintain good relations with local land- owners, carry out maintenance work on the tenements and collect mineral samples for library and other internal studies . Also during the quarter the company moved its operations base in Kimbe to more suitable premises close to the town centre and port area, and held productive meetings with landowners from some of the company's tenements . Renewal applications for the Makmak and Wowonga exploration licences have been accepted by the Mineral Resource Authority . Warden hearings for both licences set down for July 2016 were postponed to early September due to adverse weather and state of the roads between Kimbe and New Britain's south coast . MARINE Assets Corporation (MAC) is moving forward with con- struction of a production support vessel (PSV) to be used by Nauti- lus Minerals and PNG partner, Eda Kopa (Solwara) Ltd, for seafloor operations at the Solwara 1 project in the Bismarck Sea. The 227 metre-long vessel is being built at Fujian Mawei Shipbuilding in Chi- na . The steel cutting ceremony for the PSV was held in September 2015 and with the installation of the bow block, made up of three separate blocks weighing 480 tonnes in total, the main hull section nears completion. When construction is completed in the first quar- ter of 2018, the vessel is scheduled to go on a five-year charter with Nautilus . Meantime, Nautilus has signed a subscription agreement with Mawarid Offshore Mining and Metalloinvest Holding (Cyprus who have agreed to purchase shares of the company valued at up to US$20 million . Nautilus' CEO Mike Johnston said, "The company appreciates the ongoing support of its two major shareholders through this bridge financing arrangement, especially given current market conditions. We are also heartened by the continued support of all of key stake- holders, in particular, our JV partner in the project, the Independent State of Papua New Guinea's nominee and our vessel contractors, Marine Assets Corporation and Fujian Mawei shipyard. The global interest in seafloor mining continues to grow and Nautilus remains the industry leader in this expanding field." The company requires significant additional funding to complete the build and deployment of the seafloor production system to be utilised at the Solwara 1 project by the company and JV partner (as to 15%), Eda Kopa (Solwara) Ltd . The gross proceeds available under the subscription agreement will provide the bridge financing necessary to enable Nautilus to operate and to carry on the project while it continues to explore additional financing, joint ventures or other transactions that provide the funding required to complete development of Solwara 1 . The company will determine the amount of funds to be raised un- der each tranche during each month of the financing period, subject to the limitations of receiving maximum subscription proceeds of US$2 million per month and an aggregate maximum total amount of US$20 million during the entire period . For the purposes of the additional funding required and in order to continue operating during the financing period, Nautilus will imple- ment a restructuring plan . Nautilus production support vessel advances Coppermoly's tenements are on the island of New Britain . Coppermoly Coppermoly hosts Ever Leap visit hosts Ever Leap visit

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