Nautilus Minerals made target of hostile Canadian investor

JUNIOR stockmarket-listed miner Nautilus Minerals yesterday said it had been made aware of an unsolicited takeover bid from a little-known Canadian investor, sending its shares on a sharp upward spiral.

The miner, which hopes to develop the world’s first underwater copper-gold mine off Papua New Guinea, said that it was made aware that an individual called Michael Bailey and an entity controlled by him intended to make a hostile offer for the outstanding shares of the company.

Nautilus said yesterday it had no knowledge or contact with Bailey, and was unable to make any decisions regarding the offer or its validity.

It said it would consider the unsolicited offer “if and when” it is formally made, although a source with knowledge of the situation said it was likely that an offer might not appear at all.

Bailey made an unsuccessful bid to buy diamond miner Vaaldiam Resources Ltd for about $19.3m (£12m) in February 2010. The company was later bought by Tiomin Resources.

Nautilus Minerals soared on AIM yesterday, closing 39.13 per cent up at 40p.