Odyssey Marine Exploration Provides Update on Business Plan Progress
June 19 2019 - 8:45AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, reported progress on the execution
of the company’s business plan.
Odyssey’s business plan focuses on developing
subsea mineral assets to create and realize near-term and long-term
value. The company is actively expanding its subsea mineral
portfolio through development of new projects, acquisition of
mineral rights/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. An example of this
is Odyssey’s sale of a percentage of our Mexican phosphate project
for $27.5 million at an early stage of its development prior to the
resource assessment.
The management team and company are energized
and executing the business plan on multiple fronts. Funding
the further development of our business and expanding portfolio of
mineral assets is being accomplished through use of mechanisms that
are minimally dilutive to the company’s equity - focusing instead
on the sale of interests in its various mineral assets.
On June 14, 2019, Odyssey executed an agreement
that will provide non-recourse funding for prior, current and
future projected costs of the NAFTA action being pursued in
relation to Odyssey’s Mexican phosphate project. Third-party
funding assures that the company’s existing cash resources will
remain focused on building and enhancing its subsea mineral
portfolio. The funder is a company that specializes in litigation
financing of international investment dispute cases. By deciding to
provide this non-recourse funding, the funder has signaled its
confidence in the merits of our NAFTA action.
Odyssey’s NAFTA Notice of Arbitration (NOA) has now been
published on Mexico’s Secretaria de Ecomomia website. An
English version of that document is available at
www.odysseymarine.com/nafta.
“We continue to believe that a negotiated settlement with Mexico
and the issuance of our environmental permit is in Mexico’s and
Odyssey’s best interests,” stated Mark Gordon, Odyssey Chairman and
CEO. “However, if the Mexican government does not share this view,
we are prepared to see this case through to its final conclusion in
order to provide a full and fair valuation and ensure our
shareholders realize their rightful return on this investment. As
such, we are vigorously pursuing our claims under NAFTA.”
The company also has several other non-dilutive
funding initiatives underway in-line with its business plan,
including:
On June 18, 2019 Odyssey entered into a letter
of intent (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 pursuant to GAAP,
there is currently no value assigned to this asset on Odyssey’s
balance sheet. The first closing on this sale is expected in the
third quarter of 2019.
On April 15, 2019, Odyssey announced an
agreement to acquire a controlling interest in a significant subsea
mineral project located in the waters of a South Pacific country
jurisdiction that has already approved and invested in another
seabed mining project. A key condition to completing the
acquisition was obtaining an extension of the exploration license,
which was recently granted by the mining authority in the
controlling jurisdiction. This non-cash acquisition is now expected
to close in the coming weeks. Once closed, Odyssey will immediately
begin to advance the exploration plan to validate and quantify the
precious metal content of the prospective resource. Odyssey
plans to realize near-term cashflows from this asset by offering
investors the opportunity to acquire a small stake in this early
stage project. Odyssey also expects to be compensated for providing
the expert services that will be required to advance the value of
this asset.
“In my previous communications, I’ve discussed
the ongoing transformation of our business. That transformation is
now complete, and we are laser focused on our new business model -
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. “Odyssey is at the forefront of this
emerging industry, and we now have economic interests in a number
of different seafloor mineral projects. These new projects have the
potential to match or exceed the value of our Mexican phosphate
deposit. And we’re now moving these projects through critical
milestones that will allow us to realize that value in a manner
that is meaningfully obvious in the overall valuation of our
company.
Gordon added “I’m also pleased to announce that
at the Odyssey Annual Meeting and Board Meeting held June 3, 2019,
John Longley was named President in addition to his duties as Chief
Operating Officer. Mr. Longley will be responsible for the
day-to-day operations and administration of the company. Laura
Barton was also elected as our newest board member. These moves
reflect the outstanding contributions and years of service to the
company by Mr. Longley and Ms. Barton. Their appointments to these
key positions after a combined 35 years’ experience at Odyssey
underscores the level of experience and expertise we have been
successful at maintaining in our key leadership positions. In
addition, I will continue to serve as Chief Executive Officer and
will also be replacing Greg Stemm as Chairman of the Board. Greg
was named Chairman Emeritus and will continue his current role as
an important consultant and key strategic advisor to Odyssey while
developing new opportunities in the subsea mineral field for the
company.”
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
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