Deep-South Amends Agreement to Acquire Outstanding Interest in The Haib Copper Deposit in Namibia
Vancouver, B.C., Canada - TheNewswire - June 30, 2020 - Deep-South Resources Inc. ("Deep-South" or "the Company") (TSXV:DSM) (FRA:DSD) announced today that Teck Namibia Ltd. ("Teck"), a wholly owned subsidiary of Teck Resources Limited, and Deep-South have agreed to amend the sale agreement (the "Sale Agreement") dated February 14, 2017 whereby Deep-South acquired Teck's interest in the Haib Copper project in Namibia.
The Sale Agreement stipulated that Deep-South make cash payments to Teck of $200,000 on the first anniversary of the agreement and $200,000 on the second anniversary of the agreement. Deep-South has completed cash payments of $30,000 and $370,000 is outstanding and past due. Teck has agreed to settle this amount through the issuance of 4,352,941 shares of Deep-South. The shares issued pursuant to the settlement has a mandatory four (4) months holding period from the date of closing.
Following closing, Teck will hold 22,579,608 shares of Deep-South representing 26.9% of the share capital of Deep-South on an undiluted basis.
Furthermore, Teck holds a convertible debenture with a principal value of $389,117 and convertible at $0.14 with a maturity date on August 31, 2020. The parties have agreed to amend the convertible debenture and extend the maturity to December 31, 2021 at a new conversion price of $0.09. The Convertible Debenture shall continue to bear interest on the outstanding principal amount at a rate of LIBOR plus 2% per annum payable with the principal at maturity.
The transaction is subject to the approval of the TSX Venture Exchange.
About Deep-South Resources Inc.
Deep-South Resources Inc. is a mineral exploration company largely held by Namibian shareholders and Management - Directors with 24% and Teck Resources Limited with 23% of Deep-South share capital. Deep-South currently holds 100% of the Haib Copper project in Namibia, one of the largest copper porphyry deposits in Africa. Deep-South also holds an investment of 75% in the Kapili Tepe Copper exploration project in Turkey. Deep-South's growth strategy is to focus on the exploration and development of quality assets, in significant mineralized zones, close to infrastructure, in stable countries.
This press release contains certain "forward-looking statements," as identified in Deep- South's periodic filings with Canadian Securities Regulators that involve a number of risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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