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Local Government, Fishing Coops Oppose Oceanica Don Diego Project
- Now with Oceanica's EIA filed, environmental groups can comment on the claims made by OMEX.
- The Mayor of Comondu, where the project is based, has now formally spoken out in opposition to the Oceanica project and supporting the Fisheries - will protest to the President.
- Fisheries Cooperative Society Production Puerto Chale, an important Fishing coop and major contributor to the Baja economy is formally opposed to the project.
- "We are completely against mining projects being established in this area, above all within our municipality, as it aggressively threatens the different marine species and ecosystems" - Mayor of Comondu.
- At a minimum, it appears further scientific studies will be required to resolve important questions for both the fishing economy and the gray whale population impacts.
SSCA Salvage: 22 Double Eagles, No Ingots
- The latest inventory sheet is now available on the SSCA Court website - total salvage was 22 double eagles, no ingots and some misc coins.
- 22 Double Eagles allow OMEX to borrow $22,000 on their Fifth Third $10mm credit line, bringing the total net capacity up to $7.27mm today (net of $500k restricted cash).
- Latest salvage is -99.3% smaller vs May-June period based on bank collateral value estimate - project seems finished now.
- If treasure is sold as wholesale value in near term, could it cover the current debt?
Oceanica EIA Leaks In Mexico: Official Opposition Begins
- According to local Mexican media, Oceanica's Environmental Impact Assessment (EIA) that has been repeatedly delayed by OMEX, leaked out on social media yesterday.
- Detail highlighted: only 80 people required (2x shifts of 40) operating the ship to operate 24x7 for 50 years to dredge the phosphate - are any local jobs created?
- Paradoxically, the marine field is given the name "Don Diego" which alludes to the conquest and subjugation of the New World by foreign powers, "Don Diego" cousin of Hernán Cortés.
- Formal opposition document from the Advisory Council for Sustainable Development of the Northwest Region condemns the project citing numerous risks including "mass mortality" of marine life due to anoxic conditions.
- Given that "dredging offshore phosphate has never been done anywhere in the world" according to this opposition communication, a rapid approval seems unlikely to us without extensive study.
SSCA August Salvage Declines 89% From June, Funds OMEX Losses 3 Days
- Latest Salvage Inventory sheet: ~275 Double Eagles, ~35 oz of gold dust/nuggets and ~100oz misc small denomination coins, 89% LESS gold collateral vs May 19 –June 12 recovery.
- Clearly no trace of “army gold” cache: zero ingots salvaged for the first time (vs 2 tiny ones in prior month).
- Based on Fifth Third Loan Agreement, incremental double eagles should allow an additional cash draw on credit line of ~$275,000. Enough to fund OMEX operating losses for 3 extra days.
- Inventory facts contradict promotional management statements on recent conference call. OMEX now insolvent and likely filing bankruptcy shortly unless vague “marketing agreement” debt closes soon.
- Strategy Shift? Unnecessary early credit line draw to inflate Q2 cash balance and unprofitable SSCA efforts appear to be attempts to spite short sellers while impairing shareholders and creditors.
Odyssey's SEC 10Q: Out Of Cash In Weeks, Neptune Minerals Declines -94%
- OMEX’s legal 10Q filed with the SEC paints a dramatically different and darker picture than the vague, hype-filled PR and conference call which is caveated by a safe harbor disclaimer.
- Out of cash in weeks - Legal 10Q: “Our consolidated cash balance at June 30, 2014 was $5.7 million which is sufficient to support approximately two months of operations”.
- Or Get ready for dilution - Legal 10Q: “We may enter into convertible debt deals... At times, conversion prices could be lower than market price of our common stock”.
- Look out Mako & Oceanica - OMEX re-traded and crammed down junior securities at Neptune Minerals, officially valuing it at $1/share, a decline of 94% from $17.50 last reported.
- $10mm marketing agreement “Binding LOI” (an oxymoron) hyped on the conference call has NOT closed and seems dubious as OMEX does not have title to SSCA coins.
Did Oceanica Have Permission From SEMARNAT For Core Sample Drilling?
- New investigative report by local reporter in Mexico exposes Oceanica as not having environmental permits from SEMARNAT for the core sample drilling announced by OMEX.
- According to a source on the ground, Daniel de Narváez, Oceanica Director, has repeatedly been cancelling meetings over the last month with local fishing coops and politicians.
- Daniel de Narváez owns Oceanica stock via DNA Ltd Inc, a Panamanian corp using unnecessary proxy directors with alleged criminal connections we documented October 2013.
- Marcos Covarrubias, Governor of Baja state pledges to protect the fishing industry from Oceanica.
- July 29 OMEX PR hyping EIA does not even have a timetable for submission: We believe OMEX will file bankruptcy before EIA is filed - only weeks of cash remaining.
Oceanica Dying Fast: Mexico Senate Attacks
- Mexican Senator Ricardo Barroso Agramon formally calls for Oceanica's mining concession to be revoked to avoid ecological effects.
- Legislature: "There is already a large onshore phosphate deposit in Baja California Sur that produced 1.7 million tonnes in 2012 making this project unnecessary".
- The site where OMEX claims to plan to begin phosphate mining is the Gulf of Ulloa, an area highly productive fisheries.
- Appears doubtful that EIA will ever be filed now, OMEX trying desperately to raise money based on false hope with just a few weeks of cash in the bank.
Oceanica Looks Dead In The Water: Environmental Opposition
- Six+ weeks and counting: EIA still not even filed despite OMEX management saying “Completed” at Annual Meeting, NI43-101 report also still not filed.
- Pro-mining environmentalists and fishing organizations in Baja, Mexico are highly opposed to Oceanica despite EIA not even filed yet. Oceanica appears to overlap numerous commercial fishing concessions.
- OMEX now in last ditch effort to raise capital by selling unregistered securities in Oceanica to pay for corporate cash burn before Oceanica could officially be shut down.
- Last month of work at SS Central America only brought up <150 double eagles, credit line likely already tapped out: OMEX appears to be out of cash in August.
- Large Strategic players already evaluated and passed on offshore phosphate mining in Mexico, not a new idea! Could recreate the Oceanica asset at nominal cost: will not buy Oceanica.
SSCA Inventory Unsealed: Confirms Disappointing Salvage, Meson's Estimates
- SS Central America inventory matches Meson estimates posted July 10: ~5,000oz gold total, ~70/30 ingots/coins. ONLY ~150 1oz coins found in last month of work.
- Fifth Third credit line borrowing capacity should max out at $7mm unrestricted cash now, confirms Meson estimates made July 10.
- Project now appears incrementally unprofitable for further salvage, seems unlikely Odyssey Explorer will revisit the site.
- Appears OMEXs only hope of surviving August is Oceanica’s roadshow but EIA still not filed and environmental opposition in Mexico is extremely strong due to undisclosed overlapping fishing concessions.
SS Central America Comes Up Short: Bankruptcy Countdown
- SS Central America recovery coming up short: “only a few small containers” recovered over the last month: We now believe the project will be clearly unprofitable overall.
- We model cash balance hitting zero, with likely corresponding required bankruptcy filing July 16th after mid-month payroll & bills are paid.
- Oceanica EIA still not filed, local environmental opposition appears to be building strength.
- Creditors and vendors likely to be impaired at this point given high liabilities and little bill-paying cash liquid assets, will get worse with time and continued cash burn.
Is Oceanica's EIA Deliberately Not Being Filed While Trying To Raise Capital?
- OMEX announced June 4th that the Environmental Report (EIA) for Oceanica was “completed and ready to be filed shortly”: as it is STILL not filed, this is clearly deliberate.
- We believe OMEX has chosen not to file the EIA because they know it will expose the project as environmentally and economically unviable: most mining projects die in this phase.
- OMEX appears to be desperately attempting to raise capital to cover a current cash balance under $2mm that is likely to be zero soon, as cash burn remains $3mm/month.
- An Oceanica capital raise would immediately be funneled to OMEX corporate to pay high compensation and ongoing cash burn, while diluting OMEX shareholders’ upside.
- Management statements now backtracking JP Morgan involvement: definitively NOT assisting OMEX on a capital raise for Oceanica, only potential “strategic” deals, which we are highly doubtful of.
Odyssey Marine: Shrinking Cash Position Fails To Cover Current Bills, CEO Greg Stemm Must Go
- OMEX cash declined by $25.8mm (to ~$6mm) in Q1 alone, after making required $13mm debt payments and >$10mm cash burn.
- Estimated May 13th (today) cash position between $400k and $3.3mm fails to cover $6.5mm of current cash liabilities estimated due within 3 months.
- OMEX appears to have converted some or all of $2,347,826 Additional Notes after March 31st into stock at ~$1.80/sh to preserve cash, contrary to CFO statements to repay in cash.
- New $10mm Credit Line only can be drawn AFTER gold salvaged from SS Central America and appraised: unclear how OMEX can make July payroll without a rapid cash injection.
- Drastic times require drastic action: OMEX Board needs to consider action to replace CEO Greg Stemm.
New Lawsuit From Investor Highlights Imploding Odyssey Marine-Related Private Company
- New lawsuit from a large investor in Seagrass Recovery questions shell games: related-party transactions used to allegedly siphon money into insiders’ pockets.
- Seagrass is run out of same office as Neptune Minerals under the same CEO: OMEX co-founder John Morris.
- Josh Adam, SVP Finance at Neptune under CEO John Morris, raised $27.5mm for OMEX via Oceanica / Mako Resources LLC (via unregistered private securities).
- We believe OMEX is desperate to raise capital and will require a massive discount to the current $2.06/share to close.
Do Mako Investors Realize Their Tenuous Security Position In Oceanica?
- Mako Resources investors appear to have few rights to Oceanica assets due to senior OMEX payable security. Mako investors need to ask serious questions.
- Did Josh Adam of Mako negotiate this transaction at arm's length with OMEX in line with his fiduciary duty?
- Josh Adam, SVP Finance, used Highly Questionable brokers to raise capital for Neptune (OMEX's other mining venture), according to recent disclosures.
- Is the vague J.P. Morgan Oceanica connection merely through a local Chase Private Client Florida branch attempting to sell unregistered securities to HNW investors?
What Happened To Neptune Minerals? Walls Appear To Be Closing In
- Neptune Minerals and other OMEX-related private entities are imploding.
- Not good for Oceanica which has yet to even commence the tough environmental permitting process: “Fool me once, shame on you, fool me twice, shame on me”.
- We believe OMEX is desperately trying to raise equity capital.
No Secret Army Gold On The SS Central America, Short Sale Profits To Go To Charity
- OMEX track record of 17 claimed ships: 14 did not materialize, 1 taken by government, 2 below expectations.
- Thorough research on SS Central America conclusively indicates NO secret army gold stash and likely uneconomic project for OMEX.
- I, Ryan Morris, pledge to donate personal OMEX short sale profits to charity.
- Due Diligence On Odyssey's "Oceanica" Project Uncovers Numerous Undisclosed Risks
- Odyssey Marine's Smoking Gun: SS Gairsoppa Contract Facts From A U.K. Government FOI
- Snatching Defeat From The Jaws Of Victory: HMS Freedom Of Information Act UK
- Odyssey Marine: Do Investors Know What Lies Beneath the Surface? Part 2
- Investigative Report Questions Odyssey Marine's New Offshore Subsidiaries And Undersea Mining