Key points
- Odyssey agreed June 4, 2023 to acquire a 13% stake in Ocean Minerals LLC (OML), paying with a 6,000 meter ROV plus up to $10 million cash
- Can increase its stake in OML to up to 40% over the next 18 months at its discretion
- OML subsidiary Moana Minerals holds a five-year Cook Islands exploration license, granted 2022, covering 23,630 square kilometers
- Resource of over 500 million tonnes of nodules (indicated and inferred) at a 5 kg/m2 cutoff, with cobalt grade about 0.5%
TAMPA, Fla.–(BUSINESS WIRE)–
Odyssey Marine Exploration, Inc. (NASDAQ: OMEX), a global subsea mineral exploration, validation, and development company, announced today an important next step in becoming the world’s leading marine mineral development company.
On June 4, 2023, Odyssey entered into a purchase agreement to acquire a 13% interest in Ocean Minerals LLC (OML) in exchange for a contribution by Odyssey of its interest in a 6,000-meter remotely operated vehicle (ROV) and cash contributions of up to $10 million in a series of transactions over the next year. The purchase agreement allows Odyssey to acquire a total of up to 40% of OML over the next 18 months at Odyssey’s discretion.
Moana Minerals Limited, a wholly owned subsidiary of OML, holds a five-year exploration license from the Cook Islands Seabed Minerals Authority (SBMA) granted in 2022 to explore polymetallic nodules within the Cook Islands’ Exclusive Economic Zone (EEZ). Polymetallic nodules contain metals critical to the growing renewable energy market, including cobalt, nickel, manganese, and rare earth elements (REE).
The 23,630 square kilometers area covered by Moana Mineral’s license contains a stated mineral resource of over 500 million tonnes of nodules (indicated and inferred) on a wet basis at a 5 kg/m2 nodule abundance cutoff. The nodules are enriched in several metals, including a cobalt grade of approximately 0.5%. OML is actively conducting additional mineral exploration and environmental data collection to assess the environment and increase resource confidence.
Odyssey joins Transocean Minerals Holdings Limited as an equity holder in OML. Transocean announced its purchase of a minority interest in OML last year and is working on the technology and services required to harvest polymetallic nodules from the seabed. The 6,000-meter rated ROV contributed to OML by Odyssey will provide OML with an additional tool to advance the project toward eventual applications for an environmental permit and harvesting license when exploration and feasibility studies are completed and demonstrate how harvesting can be done without serious harm to the environment. Over the next year, OML expects to advance its current JORC-compliant report substantially increasing resources reported at indicated and measured levels of confidence and to obtain its preliminary Feasibility Study, among other important project milestones.
For Odyssey’s investors, this is a significant opportunity to build on the company’s experience, knowledge, and existing investment in the Cook Islands. We believe the investment should expand investor awareness of Odyssey’s existing Cook Islands investment. Odyssey expects to use secured project financing and potential arbitration proceeds to invest in OML. To learn more about Odyssey’s involvement in polymetallic nodule exploration in the Cook Islands, please see https://www.odysseymarine.com/cookislands.
Odyssey and OML are attending the 121 Mining Investment New York on June 5-6, 2023. Over 80 mining companies and more than 300 sophisticated investors will take part in one-on-one meetings matching projects to investment capital, a conference program. To register for this event, please visit https://www.weare121.com/121mininginvestment-new-york/.
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 provides marine services for private clients and governments who are interested in exploring their Exclusive Economic Zone (EEZ) to survey, map and identify any potential mineral resources present. The company focuses on the exploration of polymetallic nodules (battery metals to power the future) and subsea phosphate deposits (fertilizer to feed the future) which the company believes will provide a benefit to society now and in the future, For additional details, please visit www.odysseymarine.com. An investor presentation is available in the Investors section of the website.
About Ocean Minerals LLC (OML)
Ocean Minerals LLC is a deepwater critical metals exploration and development company incorporated in the Cayman Islands. The company’s subsidiary companies, including Moana Minerals Limited, have made a high-grade discovery of polymetallic nodules (cobalt, nickel, copper, manganese, and rare earth elements) and sedimentary muds (rare earth elements) containing critical and strategic metals. These discoveries are all entirely within the Exclusive Economic Zone (EEZ) of the Cook Islands.
For additional information regarding Ocean Minerals LLC, please visit the company’s website at: www.omlus.com
About Moana Minerals Limited
Moana Minerals Limited is wholly owned subsidiary of Ocean Minerals LLC, and is a deepwater critical metals exploration and development company incorporated in the Cook Islands with offices and operations based in Rarotonga, Cook Islands. The company has made a high-grade discovery of polymetallic nodules containing cobalt, nickel, copper, manganese, and rare earth elements entirely within the Exclusive Economic Zone (EEZ) of the Cook Islands. This deposit, reported in accordance with NI 43-101 and JORC standards, reports a resource containing over 500 million tonnes of wet nodules at an indicated (approximately 130 mt) + inferred (approximately 430 mt) confidence level, which contain approximately two million tonnes of cobalt, one million tonnes of nickel, 0.5 million tonnes of copper, and 60 million tonnes of manganese. Additionally, independent metallurgical laboratory tests have indicated rare earth element volumes in excess of 600,000 tonnes (aggregate REE basket tonnage), also contained within the nodules.
Moana Minerals Limited holds an Exploration License for 23,630 square kilometers within the Cook Islands EEZ, where the company continues to conduct further exploration activities aimed at securing environmental approvals to perform commercial operations and increasing confidence levels and size of the reported mineral resource. In parallel, and in partnership with Transocean, the Company is advancing work to develop recovery systems to harvest and process these high-quality seafloor polymetallic nodules on a commercial scale.
For additional information regarding Moana Minerals Limited, please visit the company’s website at: www.moana.co.ck
