Anglo American is investing $25 million in becoming a shareholder in Nautilus Minerals as part of the latter’s raising of gross proceeds of $68.5 million. David Heydon Nautilus CEO commented: "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.

Nautilus is commercially exploring the ocean floor for gold and copper seafloor massive sulphide deposits and is positioned to become a world leader in underwater mineral exploration. Its current main focus is the Solwara project (see IM Project News, 15-10-06), which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean.