Nautilus Minerals receives unsolicited bid

Beleagured underwater miner, Nautilus Minerals (TSE:NUS), has been given an unsolicited bid for all outstanding common stock at 97 cents per share for an aggregate purchase price of $237.99 million.

Michael Bailey, a minority shareholder, is behind the bid. Gannibal Securities is Bailey's advisor.

Nautilus says it has had no contact with Bailey and is seeking more information about the bid.

Nautilus Minerals closed today at 52 cents a share. It's 52-week range is $2.90 to 27 cents.

Nautilus Mineral's statement:

Nautilus responds to announcement of unsolicited take-over bid

Toronto, Ontario, January 8, 2013 – Nautilus Minerals Inc. (the "Company" or "Nautilus") has become aware through a news release dated January 7, 2013 that Michael Bailey, an individual, and an entity controlled by him, intend to make an unsolicited offer to purchase all of the outstanding shares of Nautilus.

Nautilus has not had any contact with Mr. Bailey or any entity controlled by him with respect to this unsolicited offer and has no prior knowledge thereof. Nautilus is 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. 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.

For more information please refer to www.nautilusminerals.com or contact:

Here is the news release from Michael Bailey:

Financial Press: Ottawa Trader Makes Hostile Takeover Bid For Nautilus Minerals

Ottawa, Ontario (PRWEB) January 08, 2013

OTTAWA, ONTARIO–(Ottawa – January. 7, 2013) – Michael Bailey and his family office solely controlled by him announced today the commencement of a tender offer for all outstanding shares of common stock of Nautilus Minerals Ltd. for $0.97 per share, net to the seller in cash.

Under the terms of the tender offer, the family office controlled solely by Michael Bailey will commence a hostile all cash bid to purchase all the outstanding shares of Nautilus Minerals Ltd. for $0.97 CAD per share for an aggregate purchase price of $237.99 million CAD. This represents a 108.6 % premium to the previous day closing price of Nautilus' stock.

The tender offer is scheduled to expire at 12:00 midnight, Eastern Standard Time, on March 1, 2013, unless the tender offer is extended. The tender offer is conditioned on the tender of a majority of Nautilus's shares calculated on a fully-diluted basis, as well as the receipt of certain regulatory approvals and other customary closing conditions.

Gannibal Securities has been engaged to act as advisor in this transaction and will negotiate lock up agreements with major Nautilus Minerals shareholders Metalloinvest (21.0%), Anglo American(11.1%), MB Resources(16.9%) and Teck Resources(4.5%). The law offices of Fasken Martineau a national law firm will represent Mr. Bailey in this transaction.

The family office controlled solely by Mr.Bailey currently owns a minority stake in the company and is now making a hostile bid to acquire 100% of the outstanding company stock with the intention of taking the company private to finance and execute the underwater mining business plan. Michael Bailey, an experienced investor and resident of Canada is an algorithmic trader and formerly a member of the Band of Scoundrels, an elite group of high frequency proprietary traders that successfully shorted Citigroup and profited over $130M in October 2008.

The acquisition is expected to close March 2013; however, the close date is subject to customary closing conditions, including regulatory review in Canada.

Animated industrial mining by Nautilus from Arnie Saiki