Press Release
Tampa, FL – July 18, 2012
– Odyssey Marine Exploration (NasdaqCM: OMEX), pioneers in the field of
deep-ocean exploration, today announced it has successfully recovered
approximately 48 tons of silver bullion from a depth of approximately
three miles. This initial recovery of bullion from the SS Gairsoppa,
a 412-foot steel-hulled British cargo ship that sank in February 1941,
totals 1,203 silver bars or approximately 1.4 million troy ounces of
silver and has been transported to a secure facility in the United
Kingdom. After unloading the cargo, taking on fuel and changing
personnel, recovery operations will continue and are expected to be
completed in the third quarter of 2012. This record-breaking operation
has so far produced the heaviest and deepest recovery of precious metals
from a shipwreck.
Odyssey is conducting the Gairsoppa project under
contract with the UK Department for Transport. Under the terms of the
agreement, which follows standard commercial practices, Odyssey bears
the risk of search and recovery and retains 80% of the net salved value
of the Gairsoppa silver cargo after recovering its expenses. The contract was awarded to Odyssey following a competitive tender process.
The amount of silver bars recovered so far represents
approximately 43% of the insured silver bars, or approximately 20% of
the total silver cargo which research has indicated may be on board. In
addition, an estimated 600,000 oz. of insured silver is expected to be
found on the SS Mantola, a second modern shipwreck recovery project being conducted in conjunction with the Gairsoppa project. Upcoming operational plans include continued recovery of silver on the Gairsoppa
from the cargo area that is in the process of being cleared and then
the inspection of other cargo holds if the current area does not hold
the rest of the expected bullion. Serial numbers and other markings from
the silver bars recovered to date all match the contemporary insured
silver cargo documentation therefore it is anticipated that the entire
insured amount is aboard. However, it is unknown at this point whether
there is additional uninsured silver on the site.
The Gairsoppa was a merchant ship torpedoed by a
German U-boat during World War II. During the War, the UK Government
insured privately owned cargo under their War Risk Insurance program.
After making an insurance payment of approximately £325,000 (1941 value)
to the owners of the silver cargo lost aboard the Gairsoppa,
the UK Government became the owners of the insured cargo. As some
sources, including ”Lloyd’s War Losses” indicate a total silver cargo
worth £600,000 (1941 value) lost aboard the Gairsoppa, there may have been additional government-owned silver cargo aboard that would have been self-insured.
“With the shipwreck lying approximately three miles below the
surface of the North Atlantic, this was a complex operation,” commented
Greg Stemm, Odyssey Chief Executive Officer. “Our capacity to conduct
precision cuts and successfully complete the surgical removal of bullion
from secure areas on the ship demonstrates our capabilities to
undertake complicated tasks in the very deep ocean. This technology will
be applicable to other modern shipwreck projects currently being
scheduled as well as our deep ocean mineral exploration activities. Our
success on the Gairsoppa marks the beginning of a new paradigm
for Odyssey in which we expect modern shipwreck projects will complement
our archaeological shipwreck excavations.”
“The progress on this project is a testament to our world-class
team. Our research department developed extensive information about the
vessel’s sinking and layout of the ship, and our marine operations team
was able to locate both the Gairsoppa and the Mantola
shipwreck sites relatively quickly last summer. We assembled the suite
of equipment necessary for a successful recovery and conducted
reconnaissance dives to plan efficient operations.” said Mark Gordon,
Odyssey President and Chief Operating Officer. “This demonstrates the
viability of the business model we have developed to identify and
recover the historic knowledge and economic value of otherwise lost
government assets.”
Odyssey commenced recovery operations utilizing the chartered 291-foot Seabed Worker
in late May after completing a series of reconnaissance dives earlier
in the year. Odyssey has contracted JBR Recovery Limited, one of
Europe’s leading silver recovery and precious metal processing
specialists, to support the logistics, refining and monetization of the
silver cargo recovered.
