Toronto-based underwater mineral exploration company Nautilus Minerals has been authorized by the Supreme Court of British Columbia to enter into an acquisition agreement with Deep Sea Mining Finance.

Under the agreement, Deep Sea Mining Finance should acquire certain subsidiaries of Nautilus and certain intercompany indebtedness.

Nautilus has obtained a court order to file a plan of compromise and arrangement among the Nautilus Restructuring Entities and their unsecured creditors and to convene a meeting of such creditors for the purpose of voting on the approval of the plan.

In the event that the plan is approved at the meeting in August this year, the petitioners will bring an application to the court for an order approving and sanctioning the plan and various transactions related to the plan and the acquisition agreement.

If the deal goes forward, Nautilus will have effectively no assets an will be liquidated upon implementation of the plan.