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Papua New Guinea continues Nautilus standoff

24th October 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – TSX-listed Nautilus Minerals, which proposes to mine copper and gold at the Solwara 1 deep-sea mining project in Papua New Guinea territorial waters, on Thursday said the State had failed to comply with the company’s ultimatum to comply with an international arbitrator’s ruling by Wednesday.

Former Chief Justice of the High Court of Australia, Murray Gleeson, early this month declared that Papua New Guinea was in breach of the state equity option agreement, which the parties signed in March 2011, in failing to buy a 30% interest in the project on November 7, 2011.

Gleeson compelled the government to comply with its obligations under the agreement to buy the 30% interest in the project and pay its share of all project expenditure incurred to date within a reasonable time.

Nautilus said it expected a payment of about $118-million.

The company on Thursday said it remained in discussions with senior officials in the Papua New Guinea government and that it was Nautilus' preference to resolve these matters “amicably” between both parties.

The company had previously said it looked forward to bringing the Solwara 1 project into production and that it would work with the country to move the project forward in light of the arbitrator's award.

Edited by Creamer Media Reporter

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