Judge orders $500 mn in sunken treasure returned to Spain

Odyssey Marine Exploration, Inc. since the spring of 2007 has
been defending in court its claim that Madrid cannot prove what the
company calls the "Black Swan" treasure was removed from the Nuestra
Señora de las Mercedes.

In a ruling issued late Wednesday, U.S. District Judge Mark Pizzo
fully accepted the arguments of the Spanish government and ruled
that the treasure must be returned to Spain because the shipwreck
is, in fact, the Mercedes and so the cargo is covered by sovereign
immunity and may not be salvaged and kept by others.

The judicial struggle does not end here, however, because Odyssey
immediately announced that it will appeal the decision, which
surprised the firm, based in Tampa, Florida.

"We will object to the Magistrate's recommendation," Melinda
MacConnel, Odyssey's vice president and general counsel, said in a
statement.

"This is clearly a case where there are many relevant issues of
fact that have been disputed, including the issue of whether the
Mercedes was on a commercial mission and whether the property
recovered belonged to Spain. I presume that the claimants in the
case who assert ownership rights by virtue of the fact that their
ancestors owned a portion of the cargo will join us in objecting,"
she said.

Odyssey CEO Greg Stemm expressed surprise at Pizzo's ruling and
said that the company had adhered scrupulously to the law.

"For the court to find that enough evidence exists to
conclusively identify the site as the Mercedes and that neither
Odyssey nor the claimants who owned the property have any legal
interest is just wrong," he said.

"I'm confident that ultimately the judge or the appellate court
will see the legal and evidentiary flaws in Spain's claim, and we'll
be back to argue the merits of the case," Stemm said.

Odyssey in 2007 brought the case before a federal court in Tampa
and argued that the gold and silver coins found at the shipwreck
site belonged to it.

The Spanish government presented evidence it used to argue that
the Spanish navy warship and its cargo rightfully belong to Madrid
and it rejected Odyssey's claim, demanding the return of all the
items brought up from the ocean bottom at the site by the
treasure-hunting outfit.

The historical documents presented in the case show that the
Mercedes sank in combat against the English fleet on Oct. 5, 1804,
off the coast of southern Portugal, and so Spain asserted that the
vessel and its cargo are part of its historic heritage, not to
mention being the gravesite of more than 250 Spanish sailors and
citizens who died when the frigate exploded and went to the bottom.

The Spanish government also criticized the fact that Odyssey
undertook the marine salvage operation in secret after having
received specific instructions that that was prohibited.

The documentation presented by the Spanish government showed that
the Mercedes was on active military service with the mission of
protecting the Spanish state and its citizens throughout its
existence, and specifically at the moment it blew up and sank.

U.S. lawyer Jim Goold, who represented the interests of the
Spanish government, also emphasized that Odyssey was aware that it
was dealing with the Mercedes and so consequently it acted in
secret.

Among the documentation presented by Spain was photographic
material and other evidence such as cannons, anchors, weapons,
personal effects and a wide variety of other items, including the
coins taken from the wreck, all of which - the Spaniards asserted -
allowed the vessel in question to be identified as the Mercedes.

Goold also defended the right of sovereign immunity that asserts
the right of a nation to protect its historic sites and heritage,
including sunken ships, from any kind of disturbance or plundering
by treasure hunters.

Spanish Culture Minister Angeles Gonzalez-Sinde said Thursday
that Pizzo's ruling sets "an important precedent with an eye toward
all future undersea discoveries."

"We're very happy. This decision is very important. I'm glad that
the judge really saw that the ship and the treasure belong to
Spain," he said. EFE

esc-lca/bp

For full details on Odyssey Marine Exploration Inc (OMEX) OMEX. Odyssey Marine Exploration Inc (OMEX) has Short Term PowerRatings at TradingMarkets. Details on Odyssey Marine Exploration Inc (OMEX) Short Term PowerRatings is available at This Link.