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Overview of UnderSea Recovery Corporation
Historical Background
Enormous quantities of gold, silver, jewels, porcelains, valuable artifacts and other cultural heritage items were known to have been lost in the thousands of “treasure ships” estimated to have been lost worldwide over time. A majority of these are believed to have been European vessels that sank in the 330-year period from 1500 to 1830. Only a fraction of the thousands of treasure wrecks have been found and only a handful fully salvaged.
ATLIS® Technology License
To pursue its mission of marine search and recovery operations, UnderSea Recovery Corporation has signed a worldwide licensing agreement in perpetuity with Admiralty Holding Company to utilize its propriety ATLIS® technology. Under this agreement, UnderSea Recovery Corporation, at its sole expense, will complete the two 1st generation ATLIS® field units and UnderSea Recovery Corporation, at is sole expense, will undertake shipwreck search and recovery projects. In return for the licensing agreement, Admiralty is entitled to receive ten percent (10%) of the net revenues directly resulting from UnderSea Recovery Corporation’s use of the ATLIS® technology.
ATLIS® Technology Description
ATLIS® (Acoustoelectric Transceiver for Localized Induction Sensing) is a one-of-a-kind remote-sensing proprietary technology used in the marine environment to detect nonferrous metals. Currently, ATLIS® has received six patents pertaining to critical aspects of the overall technology. ATLIS® can detect gold, silver, and other precious metals in salt-water environments and has been designed primarily for use in shallow water operations (at depths of 20 feet to 100 feet). More than 90% of the thousands of historic shipwrecks lost since the early 1500s are estimated to lie in shallow water locations within sight of land (no more than ten miles from shore).
Detection Technology Development
Additionally, UnderSea Recovery Corporation is currently developing a number of unique remote-sensing (detection) and ancillary technologies.
The efficiency and effectiveness of any search and salvage operation is the direct result of initial research into the design of the operation and the characteristics and adaptability of the equipment available for use in the operations. Currently, the industry is heavily dependent on advances in technology, especially for recovery operations involving depths of 300 feet and greater. One way UnderSea Recovery Corporation plans to differentiate itself is through proprietary technology such as a 3-D High Resolution Sub-Bottom Imaging SONAR, currently being developed by the Company, as well as its Rapidly Reconfigurable Polymorphic Remotely Operated Devices (RR-PRODs).
Permits
Permits or licenses from host governments are required to engage in search and recovery operations in territorial waters. The process of obtaining such permits is not easy and typically requires much negotiation and demonstration of viable and detailed project plans. The Company has significant experience and expertise in such negotiations and the preparation of such plans. Abandoned shipwrecks situated in international waters (the open seas of the world outside the territorial waters of any nation) do not require a permit, but rather seizure by in rem possession under longstanding principles of international admiralty and maritime law.
UnderSea Recovery Corporation’s CEO and Director of Permitting traveled to Haiti on two occasions during the fall of 2010 in response to that country’s interest in signing a Federal permit for Haiti’s entire territorial waters. These waters contain approximately twenty documented historic treasure ships, including the flagship of Christopher Columbus and a treasure ship laden with more than $2 billion worth of gold, according to Nigel Pickford, one of the world’s foremost treasure wreck historians, in his book, The Atlas of Shipwrecks & Treasure. Moreover, this estimated value was based on the bullion price of gold in 1994 (the year of the book’s publication) which was roughly $385 an ounce, well less than one-third of the value of gold in today’s market.
The Company had expected a permit to be issued in late 2010. However, due to the widespread outbreak of cholera and the turmoil surrounding the presidential election (the outcome of which remains undecided as of this filing), the permit signing has been delayed. However, UnderSea Research Corporation expects the licensing agreement will be signed by the summer of 2011.
Additionally, the Company has been invited to meet with the Prime Minister of the Commonwealth of Dominica and his aides to discuss the possible issuance of an exclusive license for the territorial waters of that country. The Company has also commenced preliminary negotiations with the Turk and Caicos Islands, a British Overseas Territory, for a permit.
In 2003, Admiralty Corporation was granted an exclusive permit from the Government of Jamaica to conduct archaeological research and recovery operations on Jamaica’s territorial region known as the Pedro Bank, a 2,000 square mile shallow plateau located about 70 miles southwest of Kingston. This area is known to contain numerous wrecks from the Spanish flotillas that carried large quantities of gold and silver bars, coins, gemstones and other artifacts from Central and South America (then known as the New World) to the Spanish Empire (then known as the Old World). The Admiralty permit expired in late 2005. UnderSea Recovery Corporation has initiated contact with the Government of Jamaica with a view to opening negotiations for the re-issuance of that permit or issuance of a similar permit to the Company. The Company believes it will be able to obtain a permit in Jamaica before the end of 2011, although no assurance of such issuance can be given.
Historical Research
A key component of UnderSea Recovery Corporation’s operational success will be the quality of its historical research. Millions of original records (ships’ manifests, port records, and tax documents) relating to a large percentage of the lost “treasure ships” can be extensively researched at archives located in Seville, Spain and other nations. When galleons were being loaded with gold and silver over a period of many months for their long voyages back to the Old World, Spanish and other authorities maintained meticulous written records. Nearly every item loaded onto these ships, including food, liquids and animals, was recorded. One or two copies of the ship manifest would always travel with the fleet while one copy was retained in the New World for at least a year before being sent back on another fleet and brought to Spain and eventually to sent to Seville for safe keeping.
Spain and other countries also kept records of the general location of their ships lost at sea using information from many sources including “eyewitness” reports of survivors from the wreck itself or individuals on other ships in proximity to the wreck who may have survived the event (storm, rogue waves, or battle) that caused the wreck to occur.
UnderSea Recovery Corporation has access to and will avail itself of experienced archival researchers, archaeologists, and historians for extensive shipwreck research on targeted wrecks and geographical areas.
Potential Revenue Sources
UnderSea Recovery Corporation expects to generate revenues from the sale of precious metals (on a bullion value basis), gemstones, and other valuable materials recovered from our operations. Revenues generated under the auspices of licenses with host governments are ordinarily shared with the host governments (permitting authorities). Such revenue-sharing arrangements typically range from 50% for the licensee and 50% for the licensor to 75% for the licensee and 25% for the licensor. The world market for precious metals and gemstones is enormous, with no shortage of buyers.
Other potentially lucrative revenue sources may include:
1) Sales of coins to numismatists; worldwide, there are tens of millions of such collectors
2) Sales of artifacts to museums or private collectors (many private sales are arranged by professional dealers or sold at auctions conducted by companies such as Sotheby's and Christies
3) Creation of replica gold and silver jewelry based on examples from successful recovery operations
4) Arrangements with TV and cable companies to feature ongoing operations in documentaries and other broadcast media. This would include National Geographic® the History Channel®, and Discovery®
5) The publication of one or more major books on the use of our sophisticated technologies in archaeological research and recovery of historic shipwrecks
6) Joint ventures with nonprofit museums and commercial exhibitors to display and interpret our discoveries with the public, thereby stimulating heritage tourism and associated economic impacts.
Many of the shipwrecks UnderSea Recovery Corporation intends to pursue may have important historical and cultural characteristics. All such projects undertaken will be subject to stringent archaeological standards, thus adding to the body of knowledge of the people, the history and culture of the vessel’s time. Adherence to these principles is a core value of the Company, and, in addition to satisfying professional international standards, will enhance shareholder value by increasing the economic value of the artifacts and intellectual property rights of each project.
This Web Site is currently under construction and information is continually being added. If you have any questions please contact:
info@UnderSeaRecovery.com
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