Odyssey Marine Exploration Reports Second Quarter 2020 Results - Seite 2

In addition to the ExO Phosphate project and new mineral projects in development, the company also owns a majority interest in Bismarck Mining, a company that holds an exclusive exploration license near Lihir Island in Papua New Guinea. The license area is adjacent to one of the world’s highest producing gold deposits, which is currently being mined by one of the world’s largest gold mining companies, Newcrest Mining.

Although the Covid-19 pandemic has delayed the company’s offshore plans on this project this year, the Odyssey team has established important business relationships in PNG to support legal administration, operations logistics, and government and community relations.  More information about this project can be found on Odyssey’s website (www.odysseymarine.com).

Odyssey also provides services to CIC, a mineral development company working in the South Pacific. Odyssey receives cash and equity for providing offshore, research and back office services to CIC. “This model of working with strategic partners in a manner that generates equity in seafloor resource projects demonstrates how Odyssey is executing our business plan in a manner that adds real value to the company by offsetting some of our overhead expenses while diversifying our portfolio of seafloor mineral projects,” added Gordon.

“A key element to advancing our various valuable projects and achieving the best outcome for Odyssey shareholders on the ExO project, whether through the full NAFTA process or through an earlier settlement, is that Odyssey and ExO have access to sufficient cash to sustain full operations through the maximum expected duration of the NAFTA timeline,” Gordon continued. “Between existing financing vehicles, a multi-million dollar payment expected in 2020 from an agreement related to a shipwreck project, the sale of equity in deep ocean mineral projects and other identified funding sources, we are extremely confident that we will have adequate capital to achieve these objectives.

“We continue to reduce expenses and carefully manage cash. Although expenses look higher year to year for the second quarter, the cash required was reduced. Almost $2.6 million of second quarter expenses were one-time NAFTA legal expenses that have been funded through a specialized $10.0 million litigation funding agreement. An additional $0.4 million included non-cash charges for share-based compensation and a debt discount amortization,” concluded Gordon.