The initiation stage of Nautilus Minerals" Solwara 1 seafloor copper-gold project in the territorial waters of Papua New Guinea has continued to advance aggressively.

Progress continues despite the cessation of discussions with dredging contractor Jan de Nul.

Nautilus CEO and president David Heydon says: "The company is in a vastly different position than where it was when it entered in to a Heads of Agreement with Jan de Nul 12 months ago to provide a mining platform.

"Accordingly we have attracted a range of major contractors and equipment suppliers that see Nautilus now poised to start development of the world's first seafloor copper-gold mine potentially opening up a whole new resource industry.

"The company has attracted Anglo American, Teck Cominco and Epion as major shareholders, raised significant capital (US$270 million of cash) and drilled out the Solwara 1 deposit."

David Heydon says: "Given the expressions of interest and tenders received to date for offshore components we believe that we will have the option to award a complete mining services contract that would avoid Nautilus having to contribute capital for the mining vessel or platform and provide for an experienced contractor to operate the mine offshore.

"Indications are that the total mining system will be delivered within the economic framework previously established with Jan de Nul, and allow for a mining commencement date in the third quarter of 2010 subject to timely approvals and permitting."

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