ORRV Reaches Agreement for USD 2 Million in Financing for Operations in Philippines
Oceanic Research and Recovery Inc. , a marine salvage and exploration company, announced that it has reached an agreement for USD$2,000,000 in financing for its operations in the Philippines. Known as the Tradewinds Project, this venture is a long term effort planned and organized to locate and recover multiple shipwrecks in the Philippines over the next 5 years.
To date, the ORRV team has already located two colonial era shipwrecks believed to be high value targets. Both targets were located where detailed historical research indicated they had sunk. These wrecks lie at depths which made contemporary salvage impossible and require sophisticated diving operations even by modern diving standards. Due to these factors, among others, it’s believed their cargos lie relatively intact.
The next phase of operations, planned to start in the coming weeks, will be conducted while working in cooperation with the National Museum of the Philippines and other governmental agencies. Currently ORRV is organizing legal, logistical and operational requirements to proceed with the next phase.
ORRV routinely seeks to partner with qualified organizations in various aspects of the projects it develops. When developing a project in the waters of a foreign country a local partner is often sought out to help facilitate logistical and operational issues, while qualified legal council is hired to address contract issues with the host government.
Project financing is another key area where ORRV attempts to partner with other organizations and is a cornerstone of the ORRV business model. Third party financing permits projects to be undertaken without diluting existing shareholders. The partner receives its share of the cargo salvaged as compensation for its involvement.
“This financing model has several practical benefits”, said Scott Heimdal, CEO of ORRV. “It mitigates risk to the company while avoiding dilution for shareholders. For our financing partners”, continued Mr. Heimdal, “besides receiving their investment returns in precious metals and other high value items, there are often significant tax benefits for them as well.”
Source: orrvweb ,May 27, 2011; Image: freewebs