Odyssey Marine Exploration shares surge as $1 billion deep-sea minerals merger unveiled

Shares of Odyssey Marine Exploration Inc (NASDAQ:OMEX) soared astir 120% connected Wednesday greeting aft the institution announced a merger with American Ocean Minerals Corporation to make a US-controlled deep-sea captious minerals level valued astatine astir $1 billion.

The combined institution volition absorption connected the exploration, harvesting and processing of polymetallic nodules, which are cardinal sources of nickel, cobalt, copper and manganese, positioning itself arsenic 1 of the largest US-aligned players successful the emerging deep-sea mining sector.

The woody values the merged entity astatine a pro forma equity worth of astir $1 cardinal and includes much than $230 cardinal successful full equity superior raised. This comprises implicit $150 cardinal from organization and strategical investors done a backstage placement, alongside $75 cardinal successful pre-public financing aimed astatine accelerating US and allied proviso concatenation independence.

The institution is expected to person astir $175 cardinal successful currency astatine closing.

The combined level volition beryllium chaired by Tom Albanese, erstwhile CEO of Rio Tinto, with Mark Justh serving arsenic CEO.

“AOMC volition beryllium positioned to beryllium a reliable, semipermanent supplier for American re-industrialization,” Albanese said, adding that the institution aims to instrumentality a “responsible approach” to processing deep-sea resources.

The merged institution volition clasp a diversified portfolio spanning US-regulated planetary waters and allied jurisdictions, including 2 of 3 exclusive licensed exploration areas successful the Cook Islands. It is besides targeting the resource-rich Clarion-Clipperton Zone, a immense seabed portion known for its abundance of polymetallic nodules.

Across 5 secured and prospective areas, the institution expects entree to much than 500,000 quadrate kilometers of seabed. In summation to artillery metals, the Cook Islands licence areas are believed to clasp imaginable for uncommon world elements and titanium.

Prior to closing, Odyssey plans to instrumentality a 25-for-1 reverse banal split.