Mentioned:
Deep sea mining might be the next frontier for critical minerals. Which is exactly why there’s a new billion dollar merger on the Nasdaq.
What’s happening:
- American Ocean Minerals has entered into a merger deal with Odyssey Marine Exploration (NASDAQ: OMEX) to accelerate their deep sea exploration business and become a publicly traded company
By the numbers:
- The new merger values the combined company at roughly $1B USD
- American Ocean Minerals has previously raised $75M USD privately and will raise an additional $150M USD equity financing round concurrently with the merger with Odyssey Marine Exploration
Why it matters:
- American Ocean Minerals is one of the most advanced private companies in the United States focused on deep sea mining exploration and has secured licenses in Cook Islands exclusive economic zone which gives them exclusive rights to explore large seabed areas for polymetallic nodules
Going deeper:
- American Ocean Minerals has also submitted applications for deep sea mining licenses in the United States of America with the National Oceanic and Atmospheric Administration to be allowed to explored a defined area of Clarion-Clipperton Zone located in the Pacific Ocean
The intrigue:
- Former Rio Tinto (NYSE: RIO) leader Tom Albanese is the chairman of American Ocean Minerals
The fine print:
- Odyssey Marine Exploration will need to receive shareholder approval prior to the merger being able to close and has also committed to spinning off their subsea phosphate project located in Mexico
