Key points
- Odyssey Marine Exploration reported Q3 2021 results, focused on portfolio value, balance sheet improvement and its NAFTA case against Mexico
- Increased ownership stake in the Lihir Subsea Gold project, adjacent to Lihir Island, Papua New Guinea, from 79.9% to 85.6%
- Retired $14.5 million in debt and an associated conversion option tied to the ExO Phosphate Project’s Oceanica shares
- NAFTA arbitration hearing against Mexico over the ExO Phosphate project was scheduled for January 2022
TAMPA, Fla.–(BUSINESS WIRE)–
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a global subsea mineral exploration and development company, reported results today for the third quarter ended September 30, 2021, and provided an update on current projects and future plans.
“We remained focused on three major areas in the third quarter: increasing the value of our mineral portfolio, improving our balance sheet, and preparing for a strong showing in the hearing of our NAFTA action against Mexico scheduled to take place in January,” reported Mark Gordon, Odyssey’s Chairman and Chief Executive Officer.
“In this quarter, we made considerable progress advancing our geologically diverse mineral portfolio, which includes projects targeting battery/infrastructure metals, phosphate and precious metals. Desktop research and legacy site data strengthened our confidence in several projects in our portfolio, allowing us to move forward with plans to commence at sea operations focused on producing highly detailed seafloor mapping to further validate both mineral quality and abundance in a very cost-effective method.”
“Subsequent to the end of the third quarter, we also made considerable progress in our efforts to improve the company’s balance sheet, while also improving liquidity and eliminating potential dilution in our ExO Phosphate Project, retiring $14.5 Million in debt and the associated conversion option into Odyssey’s Oceanica shares,” noted Christopher E. Jones, Odyssey’s Chief Financial Officer. “Looking forward, we continue to evaluate other opportunities to further reduce or restructure indebtedness while also working on potential strategic investments and industry partnerships that could meaningfully increase the value of Odyssey’s mineral portfolio and by extension our shareholder value.”
PROJECT UPDATES
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LIHIR SUBSEA GOLD:Odyssey recently increased its ownership stake in this project from 79.9% to 85.6%. The license area is adjacent to Lihir Island, Papua New Guinea, where one of the world’s largest terrestrial gold deposits is currently being mined and processed by Newcrest Mining. Offshore mapping of the full concession area is scheduled to be conducted in December 2021 with further offshore work planned in the first half of 2022 pending results of the survey. During the exploration phase, steps to validate and quantify the precious and base metal content of the prospective areas will be carried out in conjunction with environmental studies and surveys. Data collected in the exploration phase will accrue to environmental mitigation program development, environmental permitting, extraction and commercial program development, and ultimately formal quantification of the resources and extraction licenses.
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CIC:Odyssey currently holds 13.2% of CIC Ltd, with the ability to increase its ownership stake, and is the exclusive marine services provider to CIC. Odyssey continues to support the CIC Project as a member of the CIC Consortium, which was founded and is led by Greg Stemm, Odyssey co-founder and former CEO, and includes Royal Boskalis Westminster NV. The company has applied for an exploration license in accordance with the host country’s regulatory process. After a thorough due diligence process, the relevant government authority has just advanced several exploration license applications for public comment which will be followed by evaluation by the authority’s licensing review board. CIC was among the qualified parties that recently advanced in this process. If CIC receives an exploration license, offshore expeditions could start as early as late Q1 2022.
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EXO PHOSPHATE:Odyssey currently owns 56.3% of this project with an option to increase equity ownership to 65% upon conversion of debt. The project is currently the subject of a NAFTA action against Mexico. Both parties have completed filing all witness statements, expert reports and evidence in the case. Odyssey’s filings are available athttps://www.odysseymarine.com/nafta. Odyssey’s filings demonstrate that the project did not receive fair and equitable treatment by Mexico resulting in the illegal denial of the ExO Phosphate Project Environmental Permit. The document also highlights the strategic size and grade of the resource, the operational viability of the project, and the project’s value. Odyssey is currently working with the legal team to prepare for a strong and compelling hearing in January 2022.
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ANTIGUA & BARBUDA: Odyssey entered into a Memorandum of Understanding (MoU) with the Government of Antigua and Barbuda to determine the feasibility of a sustainable seabed mineral resource program from highly prospective areas in their EEZ. The development of the exploration program is being finalized and will become the basis for a definitive agreement, which is expected in the coming months.
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IN DEVELOPMENT: Odyssey is currently in discussion with two additional jurisdictions on further expanding its project portfolio. While it is premature to discuss details, Odyssey is excited by the prospect of utilizing the experience gained working on the ExO Phosphate Project in another potential phosphate project within the Americas, where offshore work could begin in the first half 2022.
Additional information about Odyssey’s projects, the NAFTA case and consolidated financial statements are included in Odyssey’s Quarterly Report on Form 10-Q for the period ended September 30, 2021, which is available on the company’s website at www.OdysseyMarine.com as well as at www.sec.gov.
About Odyssey Marine Exploration
Odyssey Marine Exploration, Inc. (Nasdaq: OMEX) is a deep-ocean exploration pioneer engaged in the discovery, validation and development of subsea mineral deposits in a socially and environmentally responsible manner. Odyssey’s growing project portfolio includes different mineral sets in various jurisdictions around the world. Odyssey also provides marine services for private clients and governments. For additional details, please visit www.odysseymarine.com.
