Shares of Odyssey Marine Exploration Inc (NASDAQ:OMEX) soared nearly 120% on Wednesday morning after the company announced a merger with American Ocean Minerals Corporation to create a US-controlled deep-sea critical minerals platform valued at about $1 billion.
The combined company will focus on the exploration, harvesting and processing of polymetallic nodules, which are key sources of nickel, cobalt, copper and manganese, positioning itself as one of the largest US-aligned players in the emerging deep-sea mining sector.
The deal values the merged entity at a pro forma equity value of roughly $1 billion and includes more than $230 million in total equity capital raised. This comprises over $150 million from institutional and strategic investors through a private placement, alongside $75 million in pre-public financing aimed at accelerating US and allied supply chain independence.
The company is expected to have about $175 million in cash at closing.
The combined platform will be chaired by Tom Albanese, former CEO of Rio Tinto, with Mark Justh serving as CEO.
“AOMC will be positioned to be a reliable, long-term supplier for American re-industrialization,” Albanese said, adding that the company aims to take a “responsible approach” to developing deep-sea resources.
The merged company will hold a diversified portfolio spanning US-regulated international waters and allied jurisdictions, including two of three exclusive licensed exploration areas in the Cook Islands. It is also targeting the resource-rich Clarion-Clipperton Zone, a vast seabed region known for its abundance of polymetallic nodules.
Across five secured and prospective areas, the company expects access to more than 500,000 square kilometers of seabed. In addition to battery metals, the Cook Islands license areas are believed to hold potential for rare earth elements and titanium.
Prior to closing, Odyssey plans to implement a 25-for-1 reverse stock split.