Odyssey Marine Exploration Expands Mineral Portfolio
July 15 2019 - 8:30AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, has acquired a 79.9% equity
interest in Bismarck Mining Corporation (PNG) LTD (Bismarck) in
exchange for 249,584 shares of Odyssey’s common stock.
Bismarck’s primary asset is an exclusive
exploration license covering approximately 320 square kilometers of
subsea area containing at least five prospective exploration
targets in two different mineralization types: seamount-related
epithermal and modern placer gold. In connection with the
acquisition by Odyssey, Bismarck and the seller entered into a
royalty agreement that provides for Bismarck to pay the seller a
2.496% net smelter royalty on minerals mined from the license
area.
The license area is adjacent to Lihir Island in
Papua New Guinea where one of the world’s largest known terrestrial
gold deposits is currently being mined and processed by a major
international mining company.
The deposit has significant strategic value to
Odyssey and adds valuable diversification to the company’s mineral
property portfolio. Previous exploration expeditions in the license
area, including a survey conducted by Odyssey, indicate a
polymetallic resource with commercially viable grade gold content
likely exists. Additionally, the two subaqueous debris fields
within the area and adjacent to the terrestrial Ladolam Gold Mine
are believed to have originated from the same volcanogenic source
that is currently being mined on Lihir.
Odyssey is immediately beginning to advance
Bismarck’s exploration plan to validate and quantify the precious
and base metal content of the prospective resource. The company is
also planning environmental surveys and studies accruing to
environmental permitting in compliance with Papua New Guinea
requirements. Odyssey President and COO, John Longley, and an
Odyssey advance team spent the past week in Papua New Guinea
meeting with regulatory authorities and establishing baseline
business functions essential for a successful program. The team
also met with specialists in local mining and environmental law and
logistics support service companies for upcoming marine operations
in the license area.
“We are looking forward to applying Odyssey’s
20-plus years of deep ocean exploration experience to help
Bismarck, PNG and Lihir understand the full potential of the
resource and environment in the license area. Our meetings in
October of last year and again last week reaffirm that PNG will be
an excellent host to our operations. We look forward to working
with their government agencies and businesses in a collaborative
and transparent manner to realize the full benefit of the resource
for not only the company but the country,” stated Mr. Longley.
This acquisition of the interest in Bismarck
advances Odyssey’s business plan, which focuses on responsible
development of subsea mineral assets to create and realize
near-term and long-term value for the company, shareholders and
host countries. The company is actively expanding its subsea
mineral portfolio through development of new projects, acquisition
of mineral rights and deposits, and through a leveraged contracting
model that allows value to be realized in deep-sea mineral projects
through the provision of our expert services.
These assets are being advanced up the value
creation curve, which provides opportunities to monetize them
through the sale of stakes in these individual assets at any stage
of development. In the past, Odyssey sold off a percentage of their
Mexican phosphate project for $27.5 million at an early stage of
its development prior to the resource assessment. More recently,
Odyssey announced an LOI to sell up to one third of the 15% equity
that the company holds in an early stage mineral project for up to
$5 million. This transaction values the balance of Odyssey’s
remaining interest in this project at $10 million, although as
required by GAAP, there is currently no value assigned to this
asset on Odyssey’s balance sheet.
“In my previous communications, I’ve discussed
our new business model, which includes the development of
multi-billion-dollar assets through the discovery and development
of valuable seafloor mineral deposits while being responsible
stewards of the environment,” stated Mark Gordon, Odyssey Chairman
and CEO. “This acquisition is an example of our successful
execution of our business plan, and we are focused on adding other
new subsea mineral deposits around the world to our expanding
portfolio.
“We’ve been evaluating this project for some
time and believe it will add significantly to Odyssey’s portfolio.
Millions of dollars were invested in development and exploration of
the license area by the previous owners. We’re pleased that the
acquisition was achieved in a non-cash transaction. The expense and
time involved in developing a similar property to this level would
have far exceeded the cost of this transaction, and the modest
dilutive impact is more than compensated by the potential returns
from this project,” added Gordon.
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, 2018,
which was filed with the Securities and Exchange Commission on
April 1, 2019. 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
Odyssey Marine Exploration (NASDAQ:OMEX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Odyssey Marine Exploration (NASDAQ:OMEX)
Historical Stock Chart
From Apr 2023 to Apr 2024