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| ||October 30, 2006|
Anglo American Invests US$25 million in Nautilus as part of a US$68.5 million Financing
| ||Press Release Number 2006 - 13|
Vancouver B.C., October 30, 2006 - Nautilus Minerals Inc. (TSXV: NUS) (the "Company" or "Nautilus") is pleased to announce that it has agreed to carry out a non-brokered private placement of 22,833,334 common shares at a price of US$3.00 (or C$3.37*) per common share, for gross proceeds of US$68.5 million.
One of the placees is a wholly owned subsidiary of Anglo American PLC ("Anglo") which will invest US$25 million. Anglo American is one of the world's largest mining and natural resource groups with a market capitalisation of around US$66 billion. It is a global leader in platinum group metals, gold and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and paper and packaging. The group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia.
David Heydon Nautilus CEO comments: "We are pleased to welcome Anglo American as an investor in the Company. Anglo American's access to world-class operating and technical capability can provide assistance to Nautilus in its development of its projects."
In addition, Nautilus and Anglo have signed a Heads of Agreement under which Anglo may assist Nautilus in its development of Solwara and other projects by seconding personnel with specialist skills to the project at Anglo's cost. The seconded personnel will continue to be employed by Anglo but will report to and be under the direction of Nautilus. Technical input by Anglo may take the form of advice and expertise in exploration, geophysics, metallurgy, mining, sub sea diamond mining technology and equipment and operating experience related thereto. For the five year term of the Agreement, and subject to Anglo entering in to a non-compete agreement, Nautilus would offer to Anglo the opportunity to enter in to a Joint Venture should Nautilus consider entering in to a Joint Venture on any areas over which it held exploration rights or applications for such rights on October 20, 2006.
Anglo has been granted an anti-dilution right that will enable it to maintain its percentage ownership in the shares of the Company until October 31, 2008 with the purchase price for the additional shares being 1.1 times the volume weighted average trading price of the Company's shares during the month of October 2008.
Nautilus has granted an anti-dilution right to the purchaser of the balance of the shares under the private placement that will enable it to maintain its percentage ownership in the shares of the Company, as and when, and at the price at which any common shares, or securities convertible into common shares, are issued by the Company until October 31, 2008. In addition, the purchaser has been granted the right to receive additional common shares, for no additional consideration, if Nautilus issues common shares at a price of less than US$3.00 per share after November 1, 2006. Additional shares will be issued so that the average price of all shares issued to the purchaser will be equal to the weighted average per share price of all subsequent financings completed by the Company by the earlier of October 31, 2007 or the date that an aggregate of US$43.5 million has been raised by the Company.
Nautilus has agreed to pay a finder's fee of US$4.35 million in cash and to issue 1,450,000 warrants exercisable at US$3.00 within two years of the closing of the private placement. An additional finder's fee will be payable if the anti-dilution right is exercised in the future.
The proceeds of the private placement will be used to fund the development of the Company's business. The private placement and payment of the finder's fee are subject to regulatory approval. All securities will be subject to a four-month hold period in Canada.
* Exchange rate US$1.00 = C$1.123
A conference call and live audio webcast is scheduled for 1:00 pm. (ET), Wednesday, Nov 1, 2006. Those who wish to participate should dial 1-416-644-3425, or 1-866-250-4909, if outside the Toronto area. A link to the live and archived audio webcast will be available on the company's website, www.nautilusminerals.com.
Registered brokers, analysts, media and accredited investors will be invited to ask questions. All participants are also encouraged to submit questions via e-mail, prior to the scheduled call to investor@NautilusMinerals.com.
About Nautilus Minerals Inc.
Nautilus is the first company to commercially explore the ocean floor for gold and copper seafloor massive sulphide deposits and is positioned to become a world leader in underwater mineral exploration. The Company's main focus for 2006 is the Solwara Project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean.
For more information please refer www.nautilusminerals.com or contact:
Nautilus Minerals Inc. (Vancouver)
Tel: +1 (778) 785 7591
President & CEO
Mr. David Heydon,
Tel: +1 (778) 785 7591
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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