American Ocean Minerals Corp. entered into a merger agreement with Odyssey Marine Exploration Inc. as part of a stock exchange to create a combined company worth $1 billion. This is reported by foreign media.
As part of the deal, a group of institutional investors committed to invest $150 million in a share offering and $75 million in pre-public financing with the participation of Citigroup Inc. and Cantor Fitzgerald & Co. as organizers of the placement of shares.
Upon completion of the transaction, which is subject to approval by Odyssey shareholders, the combined company will operate under the name American Ocean Minerals Corp.
As part of the deal, American Ocean Minerals is expanding its portfolio of assets in the Cook Islands Exclusive Economic Zone and in international waters controlled by the United States, including the Clarion-Clipperton Zone and Penrhyn Basin in the Pacific Ocean. The company plans to focus on the development of polymetallic nodules on the ocean floor, rich in nickel, iron, copper, cobalt, manganese and rare earths.
The deal was concluded amid concerns about the growing dependence on a small number of producing countries for essential minerals needed for the production of batteries, industrial goods, defense products and steel. The growing demand for critically important minerals, combined with their limited supply, makes the development of alternative sources an urgent task.
The Cook Islands Archipelago Administration has been developing an official regulatory framework for deep-sea mining for many years and has been ahead of many other jurisdictions in determining the stages of project implementation, from exploration to mining.
Ocean Minerals is an American exploration company for the extraction of cobalt, nickel, copper and manganese. The company is engaged in deep-sea research under the leadership of former Rio Tinto CEO Tom Albanese. The headquarters is located in Stafford, Texas.
Odyssey Marine Exploration, Inc. is an American company in the field of deep—sea exploration and development of mineral resources. The headquarters is located in Tampa, Florida.
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