LONDON (SHARECAST) - Nautilus Minerals on Tuesday responded to a hostile bid from Michael Bailey, an individual, and an entity controlled by him, to purchase the outstanding shares of the company.
The company became aware of the unsolicited offer through a news release on Monday, which said Bailey would begin a hostile all cash bid to buy shares for CAD$0.97 per share at an aggregate price of CAD$237.99m.
The mining company said it has had no contact with Bailey or any entity under his name in regards to the unsolicited offer. It was therefore unable to make any determinations regarding the offer or its validity.
“The board of directors of Nautilus will consider the unsolicited offer if and when it is formally made,” the company said in a statement.
“Nautilus advises its shareholders not to take any action in respect of such offer, if and when made, until shareholders have received further communication from the board of directors of Nautilus.”
The company's shares rocketed 60% to 46.00p at 11:06 Monday after the company was granted the first mining lease for polymetallic seafloor massive sulphide deposits at the Solwara 1 prospect in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver.
Nautilus was the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits.
The Canadian registered company's major shareholders include global mining group Anglo American and iron ore producer Metalloinvest which hold an 11.1% and 21% interest respectively.
Wow, great find! It definitely opens the door to the possibility of something similar happening with Odyssey. Between Odyssey's mining interests, the Victory and $400 million in commodity backlog, some investors may soon start waking up to the true asset value.
While the news on Nautilus Minerals does not directly impact OMEX, it certainly confirms the valuations of a company like Neptune Minerals which OMEX is a 30% owner. OMEX holds over 6mm shares of Neptune and the latest private placement there went for $17/share in the second half of 2012. That places the value to OMEX at $100mm on paper before this takeover bid of Nautilus. Arguably Neptunes value goes up with the Nautilus action.
OMEX is very well positioned now. It just needs to tell all of us what is going on and the process to generate cash from their salvage efforts.
Means nearly nothing to Odyssey. Our interest is in Neptune Minerals. Success for Nautilus could be a bellweather for Neptune (and consequently Odyssey), but there are too many degrees of separation between Michael Bailey and Odyssey.