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Nautilus receives $241.1M unsolicited takeover offer

Keywords: Tags  Nautilus Minerals, Michael Bailey, takeover bid, deep-dea miner, Gannibal Securities, copper, zinc, silver gold

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 company’s 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, Bailey’s 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 bid.

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 couldn’t 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 world’s 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 world’s surface is covered in water, and if you consider that since the beginning of time we’ve 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."

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