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.

RD

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