The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A “world leader” in shipwreck salvaging, which was recently featured in a Discovery Channel documentary, is negotiating with the Government over conducting treasure-hunting exploration in Bahamian waters, it has confirmed to Tribune Business.

Tampa-based Odyssey Marine Exploration, which was seen by TV viewers recovering 1,218 silver bullion ingots from a World War II wreck 4,700 metres deep off the Irish coast, has met Prime Minister Perry Christie and other Bahamian government officials about conducting similar operations in the wreck-rich Bahamian waters.

Laura Barton, Odyssey’s spokesperson, confirmed in an e-mailed response following Tribune Business inquiries: “Odyssey has met with government officials in the Bahamas, and we are excited about the possibility of working with the Bahamas under an agreement similar to those we have with other governments, which could recover and preserve lost cultural heritage and provide significant potential economic value to the country.”

While Odyssey did not comment further, and the Government has made no statement on the matter, Tribune Business sources close to developments confirmed that the marine salvager/explorer has met with Prime Minister Christie on its plans.

Apart from wreck salvaging/treasure hunting, this newspaper understands that Odyssey is also dangling the prospect of mining for mineral deposits in Bahamian waters in front of Mr Christie, plus the possibility of moving its head office from Tampa to the Bahamas.

“They got the PM excited,” one source told Tribune Business. “He had one big meeting with Odyssey, and Odyssey said they wanted to mine the ocean floor. They’re talking about mining and what they can do from that.”

Odyssey’s 10-K annual report filing with the US Securities & Exchange Commission (SEC) earlier this week discloses that it owns 6.2 million shares in Neptune Minerals, a company that discovers and “commercialises high-value mineral deposits”.

The company also has a long-term lease on the RV Dorado Discovery, a research vessel created for deep-ocean mineral exploration.

The 10-K filing reveals that Odyssey is focusing on Seafloor Massive Sulphides (SMS), which contain gold, copper, zinc and other minerals; Phosphorites; and Polymetallic nodules.

The company, which describes itself as a “world leader” in deep water exploration, also has two Bahamian-domiciled subsidiaries, Odyssey Marine Management and Odyssey Marine Enterprises.

Research by Tribune Business revealed that the latter was incorporated on December 20, 2012, by Lyford Corporate Services, an arm of the Klonaris & Company law firm.

Odyssey Marine Enterprises was then last month involved in a transaction where it sold $15 million worth of shares, or a 15 per cent stake, in Oceanica Resources, a Panamanian company, involved “in the business of mineral exploration, which controls exclusive permits for offshore mineral deposits in an area...believed to feature a valuable mineral resource based on extensive exploratory activities undertaken by Odyssey.

“Preliminary resource assessments indicate that the concessions, which have been granted for a 50-year period to a wholly-owned subsidiary of Oceanica, may prove to have significant economic and strategic value.”

It is unclear if the area referenced is in Bahamian waters, although Tribune Business sources suggested Odyssey was seeking to obtain exclusive exploration rights for certain areas from the Government.

Odyssey’s entry into the Bahamian wreck salvaging market will likely pique further interest in this potentially lucrative sector for the Bahamas.

The company, though, has not avoided controversy, having been ordered by the US courts to return a significant treasure find to the Spanish government - following an incident in which the Odyssey exploration vessel was intercepted, and arrested, at sea by Madrid’s naval vessels.

Tribune Business last week reported that the Bahamas could “wipe out its national debt” if it moves to permit wreck/treasure salvaging and exploration, one executive estimating $6 million could be instantly injected into the economy if pending licence applications were approved.

Anthony Howorth, the former chairman of the Bahamas Association of Treasure Salvors (BATS), who has been assisting applicants applying for licences from the Government, said one client had pledged to spend $600,000 in the Bahamas if their plans were given the go-ahead.

Other sources familiar with the situation told Tribune Business that at least 17 applications for survey licences had been submitted to the Government - the first step in wreck/treasure exploration in Bahamian waters.

The applications were submitted after the House of Assembly, under the former Ingraham administration, passed the Antiquities, Monuments and Museums Act, and accompanying regulations, that govern how artefacts are to be recovered from Bahamian waters and the division of resulting profits.

Tribune Business understands that the Government’s plan is to issue five licences in the initial tranche of approvals, and a further five at a later date, making for a total of 10.

However, none have been approved to date, and sources close to the process are concerned about potential bureaucratic delays and red tape holding-up the process.

Mr Howorth emphasised: “All the items brought up have to be given to the Bahamian government, processed at the leaseholder’s [salvager’s] expense, and the profits after that are to be divided into the 25 per cent the Government keeps, and 75 per cent that the salvager keeps.”

Apart from the financial loss to the Government and Bahamian people, the pirating of numerous wreck sites is also depriving this nation of its culture and history.

Another source said: “This is a $100 million industry a year without question. If they [the Government] were smart, this could wipe out the national debt.”

The source pointed to the wreck of the Nuestra de Signora Maravillas, thought to have gone down with $8 billion in gold in shallow waters off Grand Bahama’s West End, plus the Capitana, believed to have sunk with an estimated $2 billion in golds and emeralds from Colombia, as to the kinds of riches thought submerged in Bahamian waters.

An idea of what the treasure/wreck salvaging industry could generate for the Bahamas, in terms of economic impact, is hinted at by a 2008 survey of what it has done for Florida.

The survey, prepared for the Mel Fisher Centre, found that state’s marine salvage sector had directly generated economic activity worth $70.9 million per annum, and some 550 jobs. Earnings produced by the sector stood at $26.2 million.

“Museums, retailing operations and the donation to Florida of more than 38,000 salvaged items of historic and cultural value have benefited Florida and its citizens, as well as citizens from across the world who have visited here,” the report said.