NEW YORK Canadian
deep-sea miner Nautilus Minerals Inc. has received an
unsolicited takeover bid, the company said Tuesday.
Michael Bailey, an Ottawa-based
trader, has offered to purchase all of the companys
outstanding shares at Canadian 97 cents (98.2 cents) each,
valuing the deal at C$237.99 million ($241.1 million),
according to Gannibal Securities, Baileys advisor.
The offer is more than double
Nautilus closing price of C47 cents per share on the
Toronto Stock Exchange Friday and is a 67.2-percent premium to
the C58-cent closing on Monday, after Bailey announced his
Nautilus became aware of the bid
for the company via a news release, it said Tuesday, but added
that its board of directors would consider the unsolicited
offer "if and when it is formally made."
Bailey is already a minority
shareholder in Nautilus, he told AMM Wednesday, adding
that he has now made contact with the company.
Nautilus couldnt be
reached for comment Wednesday.
Toronto-based Nautilus owns a
500,000-square-kilometer (193,050-square-mile) area on the bed
of the Bismarck Sea, off the coast of Papua New Guinea, where
it plans to develop the worlds first underwater copper
and gold mine. The planned mining area contains an inferred
mineral resource of 1.54 million tonnes, including copper,
gold, silver and zinc, according to Nautilus website.
"Seventy percent of the
worlds surface is covered in water, and if you consider
that since the beginning of time weve only been mining on
land, this is lucrative territory," Bailey said. "The deposits
are ridiculously mineral-rich, and it only makes sense to not
only get them out of the ground but to use the technology
elsewhere in the world."