Odyssey Marine Exploration Provides Update For “Don Diego” Phosphate Project And Renegotiates Bank Loan Agreement

Posted on Sep 19, 2015


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TAMPA, Fla., Sept. 17, 2015 (GLOBE NEWSWIRE) — Odyssey Marine Exploration, Inc. (Nasdaq:OMEX), a pioneer in the field of deep-ocean exploration, today provided an update on the “Don Diego” project. Coring and testing completed to date, and calculated on a NI 43-101 compliant basis, verified by expert third parties, have determined that the resource estimate includes 588 million tonnes of phosphate ore with an average in situ P 2O 5 of 18.1%, comprised of 114.9 million ore tonnes of measured phosphorite, 243.6 million tonnes of indicated phosphorite and 229.9 million tonnes of inferred phosphorite. This is an increase of 19% from the last reported resource estimate of 494 million (measured, indicated, inferred) tonnes of phosphate ore.

Recent testing indicates the material will easily process into a market-grade product of phosphate rock concentrate suitable for acid production and subsequent fertilizer production. Within the current resource, there is a geographically refined high-grade component that could yield a sized product of approximately 29% P 2O 5. This resource estimate does not include concession areas where testing has not yet been conducted or areas below the core sample depth, where the core ended with high mineralization. Additional testing is expected to increase phosphorite resources in the deposit and updates will be provided when completed. Due to the extra time it has taken for the project to work its way through the regulatory process in Mexico, Odyssey has implemented multiple cash management strategies to minimize the short-term cash impact. This includes generating additional cash and curtailing expenses as appropriate. To this end, and in agreement with its bank, Odyssey changed the maturity date of its bank loans in order to postpone until December the $ 1.4 million payment originally due to the bank in August, freeing that cash for immediate use in general operations. The company has also recently increased coin sales from its inventory and is evaluating options to sell its headquarters building. Odyssey has received expressions of interest for the purchase of its building, which is located in an area of Tampa that is currently undergoing substantial re-development. Odyssey has significant equity in the building, and it is envisioned that any potential sales transaction would include a lease back of existing office space, so that this potential transaction will cause no disruption to the business.