Odyssey Marine Exploration, Inc. (Nasdaq:OMEX), a pioneer in the
field of deep-ocean exploration, has been awarded the exclusive
contract to conduct an archaeological excavation and recover the
remaining valuable cargo from the SS Central America shipwreck
located approximately 160 miles off the coast of South Carolina.
The ship, which was immortalized in the best-selling book, "Ship of
Gold in the Deep Blue Sea," sank in 1857 with one of the largest
documented cargoes of gold ever lost at sea.
Odyssey was selected for the project by Ira Owen Kane, the
court-appointed receiver who represents Recovery Limited
Partnership (RLP) and Columbus Exploration LLC (CE). The contract
has been approved by the Common Pleas Court of Franklin County,
Ohio, which has jurisdiction over Recovery Limited Partnership and
Columbus Exploration LLC. Kane is charged by the court with
overseeing the recovery project and has the benefit of a permanent
injunction and exclusive salvage rights over the SS Central America
shipwreck granted by the U.S. District Court for the Eastern
Division of Virginia.
"We are excited about returning to the SS Central America and
welcome the opportunity to work with Odyssey Marine Exploration on
this historic undertaking. We are confident that Odyssey's
unparalleled experience, superbly qualified personnel and
state-of-the-art equipment will build on the successes of the
first recovery effort, which has been characterized as a story of
American initiative, ingenuity and determination," stated
Kane.
"After conducting an exhaustive review of the extensive amount
of historical research available on the shipwreck, our experts
estimate the shipwreck still holds a commercial shipment of gold
that was valued at approximately $93,000 in 1857, as well as a
substantial amount of passenger gold valued in 1857 between
$250,000 and $1,280,000. The expert we retained to analyze the
extensive collection of records and contemporary accounts of the
shipwreck places the most likely 1857 face value of the total
remaining passenger and commercial gold at $760,000. The ultimate
value of the recovery can only be determined once the total
quantity, quality and form of the recovered gold is known," added
Kane.
The archaeological excavation, valuable cargo recovery and
ship-board conservation will be conducted and underwritten by
Odyssey. In return, the company will receive 80% of recovery
proceeds until a fixed mobilization fee and a negotiated day rate
are paid. Thereafter, Odyssey will receive 45% of the recovery
proceeds. Odyssey is presently preparing its recovery vessel, the
Odyssey Explorer, to begin work on the site in April utilizing the
company's equipment and personnel.
The SS Central America shipwreck site was discovered in 1987 at
a depth of approximately 2,200 meters (7,200 feet) and less than 5%
of the site was investigated at that time. An extensive collection
of gold coins, bullion and raw gold were recovered from the site
during the following years. The salvors have not returned to the
site for more than two decades as lengthy legal battles played out.
In May 2013, the court appointed Kane as receiver to supervise the
resumption of recovery operations.
"Our teams have been studying the extensive research and records
of the earlier work accomplished on the site as well as research
from our own archives," noted Mark Gordon, Odyssey's president and
chief operating officer. "We expect the project to move forward
quickly since we have access to all the previous records and
images, which provide us with a great overview of the
shipwreck. This has allowed us to begin planning operations
that will focus on the most interesting and prospective areas of
the site after we have completed a pre-disturbance survey and
high-resolution photomosaic."
Greg Stemm, Odyssey's CEO, commented, "The SS Central America is
one of the greatest shipwreck stories of all time. We're honored to
be working with the Receiver and his team to share the next chapter
of this historically important shipwreck with the world.
"We're very familiar with mid-19th century paddlewheel
shipwrecks, as well as the range of artifacts that are likely to be
on the site. We have extensive experience with the tools and
techniques required for this archaeological excavation, which will
be very similar to the successful recovery of more than 51,000
coins and 14,000 artifacts from the SS Republic completed by
Odyssey 10 years ago. We're also experienced in working at extreme
depths. The SS Central America is less than half the 4,700 meter
(15,000 feet) depth of the SS Gairsoppa, from which we successfully
recovered nearly $80 million in silver over the past two
years."
"The SS Central America project builds upon our pipeline of
existing shipwreck recovery contracts, where our compensation
rights are secured and legal issues resolved prior to cargo
recovery," added Gordon. "As previously stated, we intend to target
one or more shipwreck cargo recoveries each year totaling at least
$50 million annually, with the intention of generating a
substantial dependable flow of revenue for many years to come. We
plan to pursue other shipwreck projects in 2014, and the Central
America project provides a great addition to our schedule."
About the SS Central America
The SS Central America was a wooden-hulled, copper-sheathed,
three-masted sidewheel steamship launched in 1852 as the SS George
Law. The ship was in continuous service on the Atlantic leg of the
Panama Route between New York and San Francisco. Owned and operated
by the United States Mail Steamship Company, the SS Central America
was caught in a hurricane and sank on September 12, 1857.
When it was lost, the SS Central America was carrying a large
consignment of gold for commercial parties, mainly in the form of
ingots and freshly minted U.S. $20 Double Eagle coins. Because of
the large quantity of gold lost with the ship, public confidence in
the economy was shaken, which contributed to the Panic of 1857.
Great personal fortunes were lost as well. The Central America
carried 477 passengers, mostly miners and businessmen returning
east from California with their personal possessions and fortunes
in gold accumulated after years of prospecting during the Gold
Rush.
The SS Central America shipwreck site was confirmed in 1987, and
over a three-year period more than 1,000 hours of bottom time, a
large quantity of commercial gold was recovered from approximately
5% of the SS Central America shipwreck. This gold was ultimately
marketed and sold in a series of auctions and private sales.
Gold previously recovered from the SS Central America included
rare territorial coins and many highly sought-after mint state
Double Eagle $20 gold pieces and rare ingots. The coins and ingots
from the site have seen continued strong interest from collectors
over the years.
About Recovery Limited Partnership
Recovery Limited Partnership (RLP) was organized in 1985 as an
Ohio limited partnership to finance the SS Central America project.
Columbus-American Discovery Group LLC (CADG), as agent for RLP,
initiated an admiralty action in the United States District Court
of the Eastern District of Virginia to establish ownership of the
shipwreck and all of its contents. After more than a decade of
litigation, the court ruled that CADG owned 92.5% of the recovered
gold and issued permanent injunctions that prohibit any party other
than CADG or RPL from conducting operations related to the
site.
Ira Owen Kane is the appointed receiver for Recovery Limited
Partnership and Columbus Exploration LLC by order of the Common
Pleas Court of Franklin County Ohio. At the direction of the Court,
the goal of the receiver is to preserve and operate the business of
RLP and Columbus Exploration for the benefit of the investors and
their creditors, and to do so by initiating the operations
necessary to recover valuable cargo and cultural heritage items
that remain on the SS Central America shipwreck site.
About Odyssey Marine Exploration
Odyssey Marine Exploration, Inc. (Nasdaq:OMEX) is engaged in
deep-ocean exploration using innovative methods and
state-of-the-art technology for historic shipwreck projects, modern
commodity shipwreck projects and subsea mineral exploration.
Odyssey also provides contracting services, including proprietary
deep-ocean expertise and equipment, to governments and companies
around the world.
Odyssey discovered the Civil War-era shipwreck of the SS
Republic in 2003 and recovered over 51,000 coins and 14,000
artifacts from the site nearly 518 meters (1,700 feet) deep. Of the
coins recovered from the SS Republic, 2,675 were $20 Double Eagle
gold coins and 1,460 were $10 Eagle gold coins. The majority of
these gold coins were sold by Odyssey in 2004 and 2005 at wholesale
prices to numismatic coin dealers for an average of approximately
$6,700 per coin.
Odyssey offers various ways to share in the excitement of
deep-ocean exploration by making shipwreck treasures and artifacts
available to the general public, students, and collectors through
its webstore, exhibits, books, television, merchandise, educational
programs and virtual museum located at
www.OdysseysVirtualMuseum.com. The company also maintains a
Facebook page at http://www.facebook.com/OdysseyMarine and a
Twitter feed @OdysseyMarine.
For additional details on Odyssey Marine Exploration, please
visit www.odysseymarine.com.
Forward Looking Information
Odyssey Marine Exploration believes the information set forth in
this Press Release may include "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Act of 1934. Certain factors that could cause
results to differ materially from those projected in the
forward-looking statements are set forth in "Risk Factors" in Part
I, Item 1A of the Company's Annual Report on Form 10-K for the year
ended December 31, 2012, which was filed with the Securities and
Exchange Commission on March 12, 2013.
CONTACT: MEDIA CONTACT:
Liz Shows
Odyssey Marine Exploration, Inc
(813) 876-1776 x 2335
lshows@odysseymarine.com
INVESTOR RELATIONS CONTACT:
Ron Both
Liolios Group, Inc.
(949)574-3860
OMEX@liolios.com
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