Odyssey Marine Exploration Expanding Mineral Asset Portfolio
April 15 2019 - 9:01AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, entered into a share purchase
agreement with Seabed Capital, LLC on April 9, 2019, to acquire
Seabed’s controlling interest in a company that holds a potentially
significant subsea mineral deposit in the South Pacific in a
non-cash transaction. This transaction aligns with Odyssey’s
business model of acquiring and developing subsea mineral assets to
create near-term and long-term value.
Pursuant to the agreement, Odyssey will acquire
Seabed’s equity ownership interest in a company that has already
conducted significant exploration work on a promising high-value
seafloor mineral resource. The ownership interest to be acquired
currently represents 80.0% of the target company’s outstanding
equity interests. In return, Seabed Capital will receive up
to 250,000 shares of Odyssey’s common stock and up to a 2.5% net
smelter royalty from the target company’s future production.
An extension of the target company’s license is
one of the conditions required to close the transaction. A
comprehensive exploration plan has been presented to the
government, and public consultation meetings have been held as
required in order to obtain the license extension. The matter now
sits with the government, and the extension is expected to be
granted.
“Significant exploratory work on this deposit
has been conducted, and millions of dollars have already been
invested by the prior equity holders in this project,” commented
Mark Gordon, Odyssey CEO and President. “Because Odyssey performed
much of the original exploration work on this project under paid
contract, we are intimately familiar with the outstanding potential
of this resource. We have high confidence that the potential
strategic and economic value of this project far exceeds the modest
dilutive impact of the transaction, and we’re pleased that a
significant portion of the consideration being paid is in the form
of a royalty from future mining proceeds.”
“This project will add a new jurisdiction and
new subsea mineral type to our expanding portfolio of mineral
assets, which offers powerful diversification to our portfolio and
demonstrates our commitment to the execution of our business plan,”
Gordon continued. “We expect to begin offshore operations within
nine months of the closing conditions being satisfied. We are
excited to go to work in a jurisdiction that has a demonstrated
history in developing and investing in their seafloor mineral
resources.”
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
2562laura@odysseymarine.com
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