Odyssey Marine Exploration to Acquire Ocean Mineral Project
TAMPA, Fla., Aug. 20, 2018 (GLOBE NEWSWIRE) -- Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the field of deep-ocean exploration, has entered into a letter of intent with Seabed Capital LLC (Seabed) to acquire from Seabed an 80% interest in a holding company whose primary asset is an exclusive license for a potentially significant subsea mineral deposit. Total consideration for this acquisition is 250,000 shares of Odyssey Common Stock and an agreement that will pay Seabed a 2.5% net smelter royalty from future mine production.
The deposit has strategic value to Odyssey and adds additional diversification to the company’s mineral property portfolio. Previous exploration expeditions resulted in promising high-grade ore samples and the concession is close to other mineral projects with substantial proven value.
“A key value driver for the Odyssey business model is acquiring and developing seafloor mineral opportunities. As we mentioned in our last press release, we have been evaluating this project for some time, and we are pleased that the acquisition can be achieved in a non-cash transaction with the majority of the consideration being a royalty paid from future mining proceeds,” said Mark Gordon, CEO and President of Odyssey Marine Exploration, Inc.
“Millions of dollars were invested in development and exploration of the concession area by the current licensee. The data acquired from this prior investment provides important insight into the possible value of this deposit and expedites our development timelines. The expense and time involved in developing a similar property to this level would far exceed the cost of this transaction, and the modest dilutive impact is more than compensated by the potential returns from this project, which we hope to begin working on early next year.
“This subsea mineral concession opportunity has unique advantages. It is rare to be able to acquire such an asset at this stage of development. This investment adds meaningful diversification to our growing mineral portfolio, and we’re looking forward to executing the definitive purchase and royalty agreements with Seabed in the near future.”
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, 2017, which was filed with the Securities and Exchange Commission on March 26, 2018. 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 firstname.lastname@example.org