The court denied Argentum Exploration the right to treasure from the sunken ship
The British Supreme Court has ruled on the case of 60 tons of silver that treasure hunters from the firm Argentum Exploration recovered from a sunken ship dating back to the Second World War. When the complex and expensive work was done, competitors intervened. They reached an agreement with the South African authorities, to whom this cargo was intended 70 years ago, and started a long lawsuit to deprive Argentum Exploration of the found treasures.
During the war, a submarine sank the steamship Tilawa, which was carrying 60 tons of silver to South Africa.
In 1942, the British liner Thilawa set sail from Bombay with 732 passengers and a cargo of silver to be delivered to South Africa. 2,391 bars were destined for the Pretoria mint, which made coins, military awards and badges for all of Africa.
1,500 kilometers from the Seychelles, the ship was attacked by the Japanese submarine I-29. After being hit by two torpedoes, the liner sank
A few days later, the British cruiser Birmingham, sent to search for survivors, brought 673 passengers and crew members of the Thilawa to Bombay. Another 281 people traveling on the ship were never found.
There was no talk of saving the cargo then. Tens of tons of silver, now valued at £40 million, were thought to be irretrievably lost for 70 years.
Treasure hunters acted in complete secrecy and took roundabout routes to avoid inspection
In 2012, British financier and racing driver Ross Highett created a company called Argentum Exploration to search for Tilava. Moreover, in all likelihood, he was a figurehead. In fact, the project was led by the famous investor Paul Marshall, the founder of Marshall Wace, which is considered one of the largest hedge funds in the world. Anthony Clake, another person from his circle, was also involved with Argentum Exploration.
Kleik repeatedly participated in the search for sunken treasures and often achieved results. Bloomberg calls him the most successful marine treasure hunter of our time.
Argentum Exploration managed to find the shipwreck after 18 months. It turned out that the wreckage of the ship is located northwest of the Maldives at a depth of approximately 3.5 thousand meters. It took another two years to plan and prepare the lift.
In 2017, the British began recovering silver from the bottom of the sea. The operation lasted six months and was conducted in strict secrecy. When a ship working on a shipwreck had to call at an Omani port, the recovered silver was left in international waters in a hidden basket at the bottom.
By June 2017, treasure hunters had 2,364 silver bars. When transporting the precious metal to the UK, it was decided not to enter the Suez Canal, where the Egyptian authorities could seize the production. The silver was transported by a roundabout route around the whole of Africa.
At the same time, an American company was looking for Tilava, which had secured the support of South Africa.
In addition to Argentum Exploration, Americans from Odyssey Marine Exploration were interested in Tilava. They also tried to avoid publicity, so Marshall, Hiett and Clake did not know about it. And Odyssey Marine Exploration, in turn, did not suspect more successful rivals.
“Tilava” was not the first project for this company. She is, among other things, famous for recovering 17 tons of gold and silver from the sunken Spanish galleon Nuestra Señora de las Mercedes in 2007. An international scandal ensued, involving several countries laying claim to the treasure.
In the end, the Spanish Civil Guard captured the treasure-hunting ship, but it was too late: Odyssey Marine Exploration had managed to take the loot to the United States and refused to say where it was hidden.
The Americans decided to reach an agreement in advance with the South African authorities, to whom the Tilawa’s cargo was once intended.
They claimed 85 percent of the production and promised to give the rest to South Africa. Since we were talking about huge sums, this completely suited both sides.
When it turned out that the British Argentum Exploration got to the silver first, the South African authorities filed a lawsuit. They stated that the silver was intended for the South African mint and should therefore be considered the property of the South African government.
The case was considered by the British courts for years, and luck smiled on one side or the other
On 16 December 2020, the British Court of Admiralty ruled that the Tilawa cargo was intended for commercial, not government purposes, and therefore South Africa could not claim them. However, when the case was reheard in January 2021, the same judge recognized that South Africa’s arguments were not without merit and allowed an appeal. The further fate of the silver was to be decided by the appeal court.
Silver most likely remained forgotten until 2016, when Odyssey informed South Africa of its existence
Argentum Exploration argued that it was ready to part with the spoils if South Africa paid a reward for lifting cargo from the bottom of the sea, which is provided for by the British Merchant Shipping Act 1995.
South African authorities insisted they were under no obligation to pay or even sue because Britain’s State Immunity Act 1978 exempted sovereign nations from having to follow UK law.
In May 2024, the case reached the Supreme Court. Its judges disagreed with the Admiralty Court’s suggestion that the cargo was intended for commercial purposes. At the same time, they recognized the state immunity of South Africa, exempting it from British laws. As a result, Argentum Exploration lost its rights to silver from Tilava.
Although the treasure hunters’ claims were rejected, the court’s decision noted that the firm had recently reached a confidential settlement with South African authorities. This could mean that Argentum Exploration and its investors have a chance to keep some of the production.
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