Odyssey Marine Exploration Reports Second Quarter 2015 Results

TAMPA, Fla., Aug. 07, 2015 (GLOBE NEWSWIRE) -- Odyssey Marine Exploration, Inc. (Nasdaq:OMEX), a pioneer in the field of deep-ocean exploration, reported results for the second quarter ended June 30, 2015. 

Q2 2015 Highlights 
  • Odyssey stockholders approved all of the proposals described in the company's definitive proxy statement relating to the annual meeting of stockholders on June 9, 2015, including the proposal to adopt and approve the strategic financing agreement with Minera del Norte S.A. de C.V. (MINOSA), an owner and operator of mines and vertically integrated processing facilities (with worldwide assets of more than $750 million and net sales of $900 million), to facilitate Odyssey's offshore exploration business. 
  • MINOSA extended $14.75 million in debt financing to Odyssey. In addition, Penelope Mining LLC, a wholly owned subsidiary of MINOSA, has the contractual right to invest up to $144 million in convertible preferred stock of Odyssey under certain conditions as detailed in an Odyssey proxy statement and related documents available via the investor section of the company's website at www.odysseymarine.com.
  • Through active cost management efforts, Odyssey improved consolidated net operating cash flows by 25% ($4.2 million improvement) and reduced total comparable operating expenses by 33%  ($3.0 million cost reduction) in the second quarter of 2015 as compared to the same quarter a year earlier.  
  • Exploraciones Oceanicas, S. De R.L. De C.V. (ExO), a subsidiary of Oceanica, elected to re-submit the Environmental Impact Assessment (EIA) for the proposed dredging and recovery of phosphate sands from the "Don Diego" deposit off the coast of Mexico. The decision to do so was intended to allow additional time so that ExO, in coordination with the technical and environmental team at MINOSA, could brief government officials and community leaders in the region so they thoroughly understand the details of the project and the positive effects it will have on the Mexican agricultural industry, their state and local communities.  
  • The team aboard the Odyssey Explorer vessel completed search and preliminary inspection operations on the "Olympus" Project, which includes a cluster of five 20th-century shipwrecks believed to be carrying significant cargoes of gold and silver at the time of their sinking in the northern Atlantic. All shipwrecks were located by Odyssey and varying degrees of reconnaissance work was conducted in order to collect data on each wreck. This included multibeam surveys, sub-bottom imaging and visual inspections using a remotely operated vehicle (ROV). The information gathered during this expedition is now being analyzed to determine the financial and technical feasibility of recovery operations on one or more of the shipwrecks in the "Olympus" Project area. Preliminary work to prepare for recovery operations on at least one of the targeted shipwrecks can be performed from the Odyssey Explorer
  • Aboard the Dorado Discovery, Odyssey technicians using Odyssey equipment conducted scientific experiments and cable repair work under contract to Pelagic Research Services. The team successfully completed several complicated deep-ocean tasks in the Pacific Northwest region for government and university clients including the National Oceanic and Atmospheric Administration (NOAA) and the University of Victoria.  
  • A new mineral deposit project is also being developed by Odyssey and an application for rights to the tenement area that it lies in has already been filed. In anticipation of acquiring the mineral rights to this prospective deep-sea mineral deposit, Odyssey has developed an expedition plan designed to assess the potential viability and value of the resource. Odyssey's marine operations team stands ready to execute this program as soon as all necessary permissions are secured. The company plans to provide more details on the project as it develops. 
  • The Marine Management Organisation (MMO) conducted a public consultation in conjunction with the Maritime Heritage Foundation's (MHF) application to proceed with archaeological work on the Victory-1744 shipwreck site. The consultation period is now closed, and MHF expects to soon receive the results of this process. Separately the MHF is awaiting approval from the Ministry of Defence in order to proceed with the recovery of at-risk surface artifacts. 

Management Commentary 

"The strategic financing agreement with Penelope Mining, which received strong stockholder support, has the potential to transform our company and increase stockholder value dramatically," said Mark Gordon, Odyssey president and chief executive officer. "It will not only provide capital necessary to move forward on our pipeline of offshore projects, but more importantly we believe that the strategic guidance and resources will be a crucial catalyst to our future success." 

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