Odyssey Marine Exploration Reports Win in NAFTA Arbitration Case
September 17 2024 - 2:02PM
Business Wire
Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), an ocean
exploration pioneer engaged in the discovery, development and
extraction of critical minerals that provide solutions to global
challenges, announces an award in its arbitration with the United
Mexican States under Chapter Eleven of the North American Free
Trade Agreement (NAFTA).
Odyssey Marine Exploration (Odyssey) has received notification
from the International Centre for Settlement of Investment Disputes
(ICSID) of the arbitral award on the claims involving Odyssey and
its subsidiary, Exploraciones Oceánicas S. de R.L. de C.V. (ExO),
against Mexico. The award orders Mexico to pay US$37.1 million for
breaching its obligations under NAFTA, plus interest at the
one-year Mexico Treasury bond rate, compounded annually, from
October 12, 2018, until the award is paid in full, plus the
arbitrators’ fees and ICSID administrative costs. The amounts
awarded are net of Mexican taxes and Mexico may not tax the award.
Odyssey expects that most or all of the proceeds of the award will
be used to satisfy its litigation financing obligations.
“The ruling today validates our position that Mexico’s
environmental agency SEMARNAT wrongfully denied our environmental
permit, which received extensive input from external advisors and
industry experts to determine an economically feasible and
environmentally responsible development plan. The project remains
strategically significant and commercially viable,” said Mark
Gordon, Odyssey Marine Exploration’s Chief Executive Officer and
Chairman of the Board of Directors. "We are poised to continue
advancing our projects globally, while also collaborating with
nations interested in exploring their underwater mineral resources
to meet the escalating demand for critical minerals. Our focus
remains on minerals that offer solutions to pressing global
challenges, such as mitigating carbon emissions through renewable
energy adoption and enhancing fertilizer accessibility to support
an ever-growing global population."
ICSID will publish the decision on its website at
https://icsid.worldbank.org/ when it is available.
NAFTA Case Background
Odyssey initiated the NAFTA arbitration after the manifestly
arbitrary and discriminatory denial by SEMARNAT of an environmental
permit for ExO based not on Mexico’s regulations or on scientific
support, but on a politician’s directive. Mexico's highest federal
administrative court, the Tribunal Federal de Justicia
Administrativa (TFJA), unanimously ruled in favor of ExO in 2018
that SEMARNAT had unlawfully rejected the environmental permit in
2016. When SEMARNAT once again denied the permit in contravention
of Mexican and public international laws, Odyssey determined it
needed to commence the arbitration in order to protect its
shareholders’ investment. Today's ruling reflects the tribunal's
examination of SEMARNAT's unlawful handling of the permit. ExO is
also once again challenging the unlawful decision of SEMARNAT
before the TFJA.
About Odyssey Marine Exploration
Odyssey Marine Exploration, Inc. (NASDAQ: OMEX) is a global
leader in ocean exploration with over 30 years of experience. The
company is committed to the sustainable and responsible discovery,
validation, and advancement of seafloor critical mineral projects,
including polymetallic nodules for battery metals and subsea
phosphate deposits for fertilizers. Offering comprehensive
research, marine operations, and regulatory compliance support,
Odyssey works with governments and seafloor rights holders
worldwide. Odyssey develops its projects in collaboration with a
global network of partners, academics, and industry professionals
who share its commitment to environmentally sound solutions to
obtain minerals that will address present and future global
challenges. Learn more at www.odysseymarine.com.
Forward-Looking Information
Odyssey 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, 2023, which was filed with the Securities and
Exchange Commission on May 17, 2024. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240917082379/en/
Liz Shows Odyssey Marine Exploration, Inc. (813) 876-1776
lshows@odysseymarine.com
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