Odyssey Marine Exploration to Acquire Ocean Mineral Project
August 20 2018 - 8:15AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, has entered into a letter of
intent with Seabed Capital LLC (Seabed) to acquire from Seabed an
80% interest in a holding company whose primary asset is an
exclusive license for a potentially significant subsea mineral
deposit. Total consideration for this acquisition is 250,000 shares
of Odyssey Common Stock and an agreement that will pay Seabed a
2.5% net smelter royalty from future mine production.
The deposit has strategic value to Odyssey and
adds additional diversification to the company’s mineral property
portfolio. Previous exploration expeditions resulted in promising
high-grade ore samples and the concession is close to other mineral
projects with substantial proven value.
“A key value driver for the Odyssey business
model is acquiring and developing seafloor mineral opportunities.
As we mentioned in our last press release, we have been evaluating
this project for some time, and we are pleased that the acquisition
can be achieved in a non-cash transaction with the majority of the
consideration being a royalty paid from future mining proceeds,”
said Mark Gordon, CEO and President of Odyssey Marine Exploration,
Inc.
“Millions of dollars were invested in
development and exploration of the concession area by the current
licensee. The data acquired from this prior investment provides
important insight into the possible value of this deposit and
expedites our development timelines. The expense and time involved
in developing a similar property to this level would far exceed the
cost of this transaction, and the modest dilutive impact is more
than compensated by the potential returns from this project, which
we hope to begin working on early next year.
“This subsea mineral concession opportunity has
unique advantages. It is rare to be able to acquire such an asset
at this stage of development. This investment adds meaningful
diversification to our growing mineral portfolio, and we’re looking
forward to executing the definitive purchase and royalty agreements
with Seabed in the near future.”
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 to provide access to critical resources
worldwide. Our core focus is the discovery, development and
extraction of deep-ocean minerals. Odyssey also provides marine
services for private clients and governments. For additional
details, please visit www.odysseymarine.com.
Forward Looking
InformationOdyssey 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, 2017, which was filed with the
Securities and Exchange Commission on March 26, 2018. The financial
and operating projections as well as estimates of mining assets are
based solely on the assumptions developed by Odyssey that it
believes are reasonable based upon information available to Odyssey
as of the date of this release. All projections and estimates are
subject to material uncertainties and should not be viewed as a
prediction or an assurance of actual future performance. The
validity and accuracy of Odyssey's projections will depend upon
unpredictable future events, many of which are beyond Odyssey's
control and, accordingly, no assurance can be given that Odyssey's
assumptions will prove true or that its projected results will be
achieved.
Cautionary Note to U.S.
InvestorsThe U.S. Securities and Exchange Commission (SEC)
permits mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "measured", "indicated," "inferred"
and "resources," which the SEC guidelines strictly prohibit us from
including in our filings with the SEC. "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category. U.S. investors are
cautioned not to assume that part or all of the inferred mineral
resource exists, or is economically or legally mineable, and are
urged to consider closely the disclosures in our Form 10-K which
may be secured from us or from the SEC's website at
http://www.sec.gov/edgar.shtml.
CONTACT:
Laura Barton
Odyssey Marine Exploration, Inc.
(813) 876-1776 x 2562
laura@odysseymarine.com
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