Nautilus Minerals Limited, which is operating the world's first seabed mining site in Papua New Guinea, has announced it is terminating its agreement with the PNG government.
A statement released by the Canadian-registered company last week says contrary to the arbitrator's award of October last year the PNG government had failed to complete the purchase of its 30-percent interest in the Solwara 1 Project.
The company says it will now terminate the agreement and claim damages.
Nautilus says it still wants to reach an amicable resolution with the government.
The company was granted the first lease to mine the ocean floor for polymetallic sulphide deposits, from which it expects to obtain copper, gold and silver.