Marine archaeologist Barry Clifford told reporters he had found a 50-kilogram (110-pound) silver bar in the wreck of Kidd's ship the Adventure Gallery, close to the small island of Sainte Marie.
Captain Kidd, who was born in Scotland in about 1645, was first employed by British authorities to hunt pirates, but he turned himself into a ruthless criminal of the high seas.
After looting a treasure-laden ship in 1698, he was caught, imprisoned and questioned in front of the British parliament before being executed in Wapping, close to the River Thames in 1701.
The fate of much of his booty, however, has remained a mystery, sparking intrigue and excitement for generations of treasure-hunters.
Clifford, who was filmed by a documentary crew lifting the silver bar off the sea bed, handed it over to Malagasy President Hery Rajaonarimampianina on Sainte Marie. Soldiers guarded the apparent treasure at the ceremony, which was attended by the US and British ambassadors.
"We discovered 13 ships in the bay," Clifford said. "We've been working on two of them over the last 10 weeks. One of them is the Fire Dragon, the other is Captain Kidd's ship, the Adventure Galley."
Read more at Discovery News
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