Nautilus Minerals has reported that the contact for its production support vessel has been rescinded by the shipyard where it was being constructed.
Nautilus Minerals (TSX:NUS) has announced that it has been notified by Fujian Mawei Shipbuilding, the owner of the shipyard where Nautilus’ production support vessel (PSV) is being built, that they have rescinded the shipbuilding contract between them and MAC Goliath, the contractor engaged by Nautilus to procure the construction of the PSV on behalf of Nautilus.
As quoted in the press release:
The shipyard’s notice of rescission is in response to MAC’s failure to pay the third instalment of the contract price (~US$18M + interest). In its press release of December 11, 2017, the company reported that the shipyard had notified the company of MAC’s default. Notwithstanding the rescission of the shipbuilding contract by the shipyard, discussions are continuing and the company will issue further updates as matters develop.