Odyssey Marine Exploration, Inc., a pioneer in the field of deep-ocean exploration, has executed an agreement to provide marine services including mining exploration and drilling operations to client companies of Robert Fraser & Partners LLP (RFP) in a tenement area controlled by Dorado Ocean Resources. The drilling will be conducted on a Seafloor Massive Sulfide (SMS) deposit that was surveyed by the Odyssey and Dorado teams during the first 100 days of exploration in Dorado's South Pacific concession areas in 2010.
Three separate areas have been identified for sample drilling in one tenement based on preliminary sample analysis. This contract is for exploration and drilling services in one of those areas. Additional contracts for the remaining two areas in the tenement are expected to be executed during the second quarter.
Odyssey is responsible for providing the research vessel, equipment, and technical crew to conduct the operation. The contract provides for preliminary cash payments totaling approximately U.S. $1.5 million to Odyssey plus additional payments based upon revenue derived from the project. After the repayment of mining costs, Odyssey will receive 50.2% of net revenue until an additional £3.7 Million (approximately U.S. $5.9 million) has been received. The additional two contracts are expected to have similar terms. Odyssey may also benefit from successful monetization of the deposits because of the company's 41% stake in Dorado.
"We are pleased to have introduced clients who have executed the first of several planned mining exploration and drilling contracts with Odyssey and Dorado for our client companies," commented Colin Emson of Robert Fraser & Partners. "The deep-ocean mining exploration business holds great promise and we are happy to be able to introduce our clients into this opportunity at an early stage."
For additional information about the results of initial mineral exploration work in the Dorado controlled tenement areas of the South Pacific: Dorado Ocean Resources announces results of first 100 days of exploration in South Pacific