Odyssey Marine Exploration Provides Update on Mexican Phosphate Project
April 25 2019 - 9:20AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, today provided an update on
subsidiary Exploraciones Oceanicas’s (ExO) phosphate project
in Mexico and the steps being taken to defend shareholder interests
in the development of the project.
Further to its filing on January 4, 2019 of a Notice of Intent
(NOI) under Chapter Eleven of the North American Free Trade
Agreement (NAFTA), in early April 2019 Odyssey management and
representatives of the ExO project participated in face to face
consultations in Mexico City with representatives of the Mexican
Secretaria de Economia (Ministry of the Economy) and SEMARNAT
(Environmental Ministry). Consultations are mandated under
NAFTA to promote amicable resolution of notified claims. The
meeting provided Odyssey an opportunity to review its careful
environmental due diligence, the benefits of the phosphate project
for Mexico and its concerns about governmental decision-making
relating to the project to date. The NAFTA process permits
continued dialogue notwithstanding full engagement in the dispute
resolution process. Odyssey will take advantage of this
opportunity to continue to press its case, confident that pursuit
of the project is fully aligned with key Mexican Government policy
objectives.
Although Odyssey was pleased with the tenor and direction of
these initial consultations, consistent with its efforts to secure
the success of the project through appropriate legal action,
Odyssey on April 5, 2019 filed its Notice of Arbitration
(NOA) under Chapter Eleven of NAFTA. NAFTA mandates that a
NOA may be filed 90 days after the filing of a NOI, and following
the conduct of consultations. Through this most recent
filing, Odyssey formally has initiated the arbitration process
under Chapter Eleven of the NAFTA. Odyssey provided a public
version of the NOA to the Mexican Government which will be posted
on Mexico’s public access website. Should the claim proceed
to a full hearing on the merits, Odyssey is confident that its
position will prevail and that the company and ExO will be granted
substantial damages, equivalent to the fully realized value of the
project.
“We continue to believe that a negotiated settlement in lieu of
further litigation under NAFTA is in Mexico’s and Odyssey’s best
interests, and we hope to continue a constructive dialogue with the
current Mexican Administration. I returned from consultations in
Mexico with a renewed sense of optimism that this project will move
forward and will create significant benefits for both Odyssey’s
investors and the people of Mexico, including the enhancement of
Mexico’s food security and self-sufficiency,” stated Mark Gordon,
Odyssey CEO. “But, if Mexico does not share these goals, we
are prepared to go the distance to ensure our shareholders realize
their rightful return on our investment.”
In parallel with the NAFTA action, Odyssey has also been
pursuing available domestic remedies, notably through Mexico’s
Superior Tribunal of Administrative Justice (TFJA). At a hearing on
April 24, 2019, the TFJA advised ExO that in light of a procedural
issue arising under Mexican domestic law, its current application
would have to be resubmitted to the court in a different form.
Odyssey expects the TFJA to issue a formal order soon, which will
allow ExO to file an alternative administrative action. In
that process, ExO can seek annulment of the SEMARNAT decision of
October 12, 2018.
According to ExO’s Mexican legal counsel, the TFJA’s recent
determination is neither a reversal of their unanimous decision of
March 21, 2018, which nullified SEMARNAT’s original denial of the
MIA on April 7, 2016, nor is it a validation of the legality of
SEMARNAT’s denial of the MIA October 12, 2018.
“Our decision to undertake the NAFTA action earlier this year
has just been reinforced by this unanticipated additional delay in
the domestic legal process in Mexico. We now have the right to
pursue this additional appeal option presented to us by the
domestic court in parallel with the NAFTA action. We have full
confidence in the environmental and economic merits of this project
and will continue to take all necessary steps to protect
shareholder assets,” Gordon concluded.
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