Nautilus Minerals reported that the government of Papua New Guinea (PNG) will release $113 million – which was placed into escrow on May 2014 – to Nautilus on completion of an agreement between the two parties on December 11.

Nautilus Minerals (TSX:NUS,OTCQX: NUSMF) reported that the government of Papua New Guinea (PNG) will release US$113 million – which was placed into escrow on May 2014 – to Nautilus on completion of an agreement between the two parties on December 11. Investors following the company will recall that Nautilus has previously had disputes with the PNG government over its Solwara 1 project. However, with the government placing funds into escrow earlier this year and releasing them now, it appears that Nautilus now has good state support for the project.

As quoted in the press release:

Completion of the purchase of a 15% interest in the Project by the State’s nominee, Eda Kopa (Solwara) Limited (State Nominee) will now proceed in accordance with the Agreement. The State Nominee and Nautilus have agreed that completion will occur on December 11, 2014, at which time the funds held in escrow (being the US$113 million) will be released to Nautilus and the joint venture between the parties in respect of the Project (Solwara 1 JV) shall be formed. Following completion, a formal celebration will be held and attended by senior State Government Ministers and bureaucrats to mark this significant milestone for the Project.

Nautilus CEO, Mike Johnston, said:

We are excited that the shipbuilding contact has been signed for the construction of the vessel and the first installment paid, which now allows for the release of the State Nominee’s funds from escrow and the formation of the Solwara 1 JV.

Click here to read the Nautilus Minerals (TSX:NUS) press release