Nautilus Minerals Inc (OTCMKTS:NUSMF) Is The Newest Glamour Stock

It has been a glamorous month for Nautilus Minerals Inc (OTCMKTS:NUSMF) as their price took a turn for the better. Over the course of February, the stock’s price has risen from $.15 to highs of over $.3, a 100% increase in their stock price.With such movements sending shareholders smiling to the bank, we decided to take a closer look at the stock and evaluate whether this price surge will hold in the long run or whether the company’s stay in the glamorous lane will is a mere short-term experience.Readers can have a look at the company’s price action below: NUSMF Daily ChartBackground on NUSMFBefore going into the analysis, let us first have an overview of the company for the sake of first-time readers.Nautilus Minerals Inc is a Canadian registered company listed on the TSX:NUS stock exchange and is also a member of Nasdaq International Designation program.Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulfide deposits. The company was granted the first mining lease for such deposits at the prospect known as Solwara 1, at the territorial waters of Papua New Guinea where it is aiming to produce copper, gold, and silver. The company was also granted an environmental permit for the site.This is a company that has its eyes fixed on copper-gold mining on the sea floor and launch the production capacity in this hitherto unexplored territory. It successfully built a state of the art ship to be used for this purpose. Nautilus production support vessel is being built by "MAC" Goliad Pte Ltd.Recent DevelopmentsThe company recently secured a loan facility of US $7 million which will be used to finance working capital expenditure and also facilitate the development of a seafloor production system. The company is keen to see the pilot project of Solwara production facility become fully operational. The said loan secured early this year 2018 attracts an interest rate of 8% and is payable bi-annually with a one-year maturity date.The bridge loan arrangement to be secured against company assets is open-ended up to the tune of US$34 million. The company meanwhile has secured its loans using a different arrangement by offering the lender 3,221,649 warrants of the company. Each warrant gives the lender the right to purchase one common share of the company over a period of five years from the date of the warrant issue. The projects are high capital expenditure with Solwara requiring a total of US $ 350 million. This financing is a huge shot in the arm especially for a company exploring such unexplored territory with such huge development expenditure.As at 20th day of February 2018 the vessel to be used for mining known as Production Support Vessel and associated equipment to be used by Nautilus and its partner Eda Kopa (Solwara) limited at the Solwara 1 project site in the Bismarck Sea of Papua New Guinea was nearly 75% complete. All the cargo handling equipment had been fixed.Early this year the company appointed Mr. AL Barwani to its board as a non-executive Chairman. He is a director and shareholder of MB Holding Company LLC and chief executive officer of Mawarid Mining LLC, a wholly owned subsidiary of MB Holding Company. MB holding company is Nautilus largest shareholder. The company is also in the process of looking to appoint new independent directors who have the requisite business acumen needed to support financing and delivery of the world's first deep-sea mine.Towards the end of January this year and to demonstrate that the company is all set for the task ahead it announced the successful testing of seafloor production tools. The final machine, the Bulk Cutter is due to finish trials by end of February. All the necessary trials on the efficacy of the machine have been done with overall cutting and endurance performance at an advanced stage. Approximately 770 tonnes of material were cut during trials with the site team giving a thumbs up on the machines efficiency levels. The equipment acquired by the company have all surpassed expectations at the testing stage setting the stage for a final rollout program.Early in the month of February, the company received additional bridge loan funding which will go a long way in financing the offshore mining project. The company has so far received US$4,750,000. The most recent advance from Deep Sea Finance limited is a total of US $2,000,000.The lender has in turn been awarded 8,591,065 warrants of the company. Put differently this gives the lender an additional 20,403,779 share price warrants issued to the lender so far.The oceans hold significant deposits of copper, gold, silver, zinc, nickel cobalt and manganese needed by the world. The world needs such minerals in order to offer eco-friendly solutions that have low carbon emissions especially in battery and electric vehicle manufacturer. The market potential for this company is non-decreasing. The government of Papua New Guinea granted a two-year exploration license which will allow the company to conduct exploration activities in this area within the southeast Bismarck Sea. This renewal was granted on the 9th day of February 2018.The area is about 2,558 square kilometers and was selected based on earlier reconnaissance studies done and geology survey data that support such an undertaking.From the word go, the company's success story so far can be attributed not only to good management expertise but it's engagements as well. AMC which is one of the world's most trusted mining consulting companies has been its lead advisor on the technical front especially so in the area of finding smarter ways to mine and underneath hidden business value.The company appointed Mr. Wayne Knott to the role of Chief Operating Officer on the 22nd day of February 2018. He will, therefore, oversee the company start drilling operations commencing in March 2019 in Papua New Guinea. Mr. Wayne previously worked as Nautilus Minerals Operations Manager and has a 30-year mining industry experience to his credit. The company is headed by Mike John Nautilus as it's C.E.O.ConclusionThe story of Nautilus Minerals Corp is one of unexplored territory and unlimited possibilities. It speaks to the future of mining and gives hope that this space will continue to grow long into the future. As such, we remain positive about the future prospects of NUSMF.We will be updating our subscribers as soon as we know more. For the latest updates on NUSMF, sign up below!Disclosure: We have no position in NUSMF and have not been compensated for this article.