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Deep-South Resources agrees to acquire Haib Copper Deposit

Mining News - Published on Fri, 17 Feb 2017

Image Source: Deep-South Resources
Deep-South Resources Inc announced that it has entered into an agreement to acquire from Teck Namibia Ltd a wholly owned subsidiary of Teck Resources Limited, the remaining 70% of Haib Minerals that it does not own in exchange for, among other things, 13.6 million common shares of Deep-South. Haib Minerals holds the Exclusive Prospecting Licence 3140 which hosts the Haib copper project situated in the south of Namibia. At closing, Deep-South will hold 100% of Haib Minerals. At closing, in addition to its current shareholding, Teck will hold 17,776,667 of the common shares of Deep-South, representing about 35% of the Company’s share capital based on the common shares currently outstanding.

In addition to the Deep-South shares to be issued to Teck, Deep-South shall:

– Pay $400,000 to Teck in accordance with the following schedule:

– First anniversary of the agreement: $200,000

– Second anniversary of the agreement: $200,000

Teck shall hold a pre-emptive right to participate in any financing of Deep-South as long as Teck holds over 5% of Deep-South’s outstanding common shares;

Teck shall be granted a 1.5% NSR. Deep-South shall have the option to buy back 1/3 of the NSR in consideration for $ 2 million;

If Deep-South sells or options the Property or a portion of the Property during the 36 months following closing, Teck shall receive 30% of the sale gross proceeds if the sales occurs during the first 24 months after the closing and shall receive 20% of the gross proceeds if the sale occurs between the 24th and 36th months after closing;

Teck shall be entitled to a production bonus payment that will be declared at the time the company takes the decision to start mine development. Half of the bonus shall be paid upon the decision to start mine development and the second half shall be paid upon commencement ofcommercial production.

Mr John Akwenye chairman of Deep-South stated that “We are delighted with this transaction. Haib is the largest known porphyry copper deposit in Africa and is situated in an ideal location adjacent to modern infrastructure and in one of the best mining countries in Africa. In becoming our largest shareholder, Teck is a strong shareholder to have in support of the Company. Haib has substantial exploration potential and is a quality asset that adds strong value for our shareholders.”

Source :

Posted By : Rabi Wangkhem on Fri, 17 Feb 2017
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