TAMPA, Fla.--(BUSINESS WIRE)--Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a deep-ocean exploration pioneer engaged in the discovery, validation and development of subsea mineral deposits in a socially and environmentally responsible manner, reported results for the second quarter ended June 30, 2021, and provided an update on current projects and future plans.
“The second quarter of the year has been very productive from a research, planning and strategy standpoint. During the quarter, Odyssey made progress on all fronts of its mineral exploration portfolio,” said Mark Gordon, Odyssey CEO and Chairman of the Board.
“We continue to work with the CIC Consortium on a project in the Pacific Ocean. CIC, with extensive support from Odyssey’s team, submitted a proposal for an Exploration License late last year. We are excited to be a part of CIC’s bid for this important project.
“In Papua New Guinea (PNG), after months of delay caused by the COVID-19 pandemic, we made progress on the LIHIR Subsea Gold project, where Odyssey owns a 79.9% stake. On August 5, 2021, we received a multi-year Exploration License renewal from the Mineral Resource Authority (MRA) of PNG. We appreciate the support of the MRA and look forward to working with the PNG government within their regulations and fulfilling our steadfast commitments to transparency and excellent community relations. Importantly, we expect to commence offshore operations for the exploration program by year-end pending any further delays caused by the pandemic.”
“In June, we filed our Reply to Mexico’s Counter Memorial in our North American Free Trade Agreement (NAFTA) case seeking damages for Mexico’s illegal denial of an environmental permit for the ExO Phosphate Project. Importantly, we secured additional legal funding to pursue the NAFTA case through the anticipated January 2022 hearing. The additional funding affords us the opportunity to, among other things, add further experience and expertise to our team.
“Finally, the addition of Christopher Jones as our CFO has positioned us to execute on company and project plans to drive increased stockholder value. When considering the potential and projected combined enterprise value of our mineral projects, we firmly believe this value is not reflected in the market value of our common stock. With Chris at the financial helm of Odyssey, and with the support of the whole Odyssey team, we look forward to further demonstrating the value of our existing project portfolio, while also improving our access to the financial markets, to support our growth. I am excited to bring Odyssey to the next level with Chris and the rest of the Odyssey team,” concluded Gordon.
LIHIR Subsea Gold Project
Odyssey was recently granted a renewal for its Exploration License (EL 1877). The company plans to begin its LIHIR Subsea Gold Exploration Program before the end of 2021 provided there are no constraints from the COVID-19 pandemic. The multi-year Exploration Program will focus on robust environmental surveys and studies that will accrue to environmental permitting in compliance with PNG’s requirements as well as the development of an EIA (Environmental Impact Assessment). During the exploration phase, steps to validate and quantify the precious and base metal content of the prospective resource will also be carried out. Once completed, if the data show extraction can be carried out responsibly, Odyssey will apply for a Mining License.
Odyssey continues to support the CIC Project as a member of the CIC Consortium. The consortium has applied for a mineral exploration license in accordance with the host country’s legal process. If greenlighted, this project is expected to provide a unique opportunity to explore for critical mineral assets in the deep ocean of a Pacific island nation’s EEZ. Offshore expeditions may start before the end of the year depending on approval dates and COVID-19 restrictions.
ExO Phosphate Project
On June 29, 2021, Odyssey filed a robust Reply to Mexico’s Counter Memorial. This filing fortified the position 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 pleased with the value added by the litigators and expert witnesses added to the legal team in support of this filing and in preparation for a strong and compelling hearing in January 2022. The expanded legal team features litigators with significant proven NAFTA experience against Mexico as well as specific experience rebutting many of Mexico’s experts.
Odyssey’s First Memorial is available at https://www.odysseymarine.com/nafta. The NAFTA hearing is scheduled for January 2022 unless the case is settled earlier by the parties.
Additional Project Updates
Odyssey continues to be driven by the company’s primary expertise in subsea exploration and increased focus on important and valuable mineral deposits. On this front, Odyssey is currently in discussion with three separate jurisdictions on further expanding its project portfolio. While it is still too early to disclose locations and partners, 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.
Consolidated financial statements are incorporated into Odyssey’s Quarterly Report on Form 10-Q for the period ended June 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 engaged in ocean exploration using innovative methods and state-of-the-art technology to discover, validate and develop subsea mineral resources. Odyssey’s growing project portfolio includes projects exploring different mineral sets in various jurisdiction around the world. The company’s mission is to drive superior economic returns by providing critical mineral resources in a manner that has a net positive impact on the global environment. Odyssey also provides marine services for private clients and governments. For additional details, please visit 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, 2020, which was filed with the Securities and Exchange Commission on March 31, 2021. 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. Investors
The 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.