February 21, 2019

Filing Type:

Company Counsel: Fasken

Trustee: PwC

Trustee Counsel: Cassels Brock

Industry:

Province:

Nautilus Minerals (TSX:NUS), the Vancouver, British Columbia-based parent company and sole owner of a group of 42 companies (together, the "Nautilus Group") that is in the business of seafloor resource exploration and development, sought protection under the CCAA on February 21. The Nautilus Group, which owes approximately $36.0MM (USD) to its creditors, including $18.3MM to Deep Sea Mining Finance ("DSMF"), has invested significantly in the design and construction of specialized equipment for the purpose of conducting seafloor mineral mining (the "Seafloor Production System"). The parent company has recently encountered difficulty raising additional capital to continue construction of the Seafloor Production System and the continuation of its business. The mining operations do not yet generate any revenue and will not do so until the Seafloor Production System is completed. However, due to lack of funding, construction of the system has stalled. Over the past year, the company has unsuccessfully sought to secure additional financing. The company requires an immediate stay of proceedings under the CCAA to give it the breathing room it requires to implement a sale and investment solicitation plan and complete a sale or restructuring transaction. During these proceedings, DSMF is prepared to advance up to $4.0MM in interim financing. PwC was appointed monitor. Counsel is Fasken for the company and Cassels Brock for the monitor.