Vancouver, B.C., Canada – June 28, 2018 – Deep-South Resources Inc. (“Deep-South” or “the Company“) (TSX-V: DSM) announces that it has signed a licence agreement (“Agreement”) with Alexander Mining (“Alexander”), to acquire a licence for the potential use of Alexander’s proprietary Leaching Technologies (“Leaching Technologies”) at the Kapili Tepe polymetallic copper project (“KT Project”) in the Sivas Province in the northeast/ central part of Turkey. The Agreement is conditional on Deep-South completing the acquisition of a 75 per cent equity interest in the Kapili Tepe Project.
The Kapili Tepe Project is a copper mineralised altered and brecciated shear zone also containing nickel, cobalt and gold mineralisation. The Kapili Tepe Project comprises one Mining Licence and two Exploration Licences, which are contiguous. The licensed area covers approximately 5,240 hectares. For more information about the project, please follow this link.
Deep-South proposes to delineate a NI 43-101 Compliant Mineral Resource Estimate and then decide on whether to conduct a Preliminary Economic Assessment (“PEA”), which would be followed by a Pre-Feasibility Study (“PFS”) for the estimation of a potential construction of a mine. Both the PEA and PFS work will include investigating a mineral processing plant at the Kapili Tepe Project using Alexander’s Leaching Technologies.
Alexander has granted Deep-South a licence for the potential use of its Leaching Technologies on amenable mineralised materials sourced from the Kapili Tepe Project and also associated mineral processing technical consultancy services on the following key terms:
- Alexander will receive a royalty of 2.5 per cent. of gross saleable metal products produced from a potential mining operation at the Kapili Tepe Project, if using Alexander’s Leaching Technologies.
- Upon completion of Deep-South’s acquisition of the 75 per cent interest in the Kapili Tepe Project and approval from the TSX Venture Exchange, Deep-South shall issue 500,000 common shares to Alexander.
- For an initial period of 24 months from the start of Deep-South formally committing to a PEA of the Kapili Tepe Project, to be renewed on a mutually acceptable rolling three months’ basis thereafter, a monthly technical consultancy services retainer fee of US$7,500, paid in advance.
About Alexander Mining
Alexander Mining is an AIM listed mining and mineral processing technology company with a reputation for strong technical management, allied with financial markets expertise and experience. Alexander’s activities are directed towards the objective of becoming a highly profitable and diversified mining technology company. This will be achieved from the commercialisation of its proprietary mineral processing technologies, partnerships in producing mines and the acquisition of equity positions in advanced projects.
Martin Rosser, Chief Executive Officer, said: “Alexander’s interest in the Kapili Tepe Project goes back several years and we are delighted that a potential strong new owner is now interested in progressing the Kapili Tepe Project. We look forward to working closely together with Deep-South on this project, which has significant potential for the use of our Leaching Technologies.”
Mineral Resources on the Kapili Tepe project have not been estimated yet on the project nor has it demonstrated economic viability at this stage. The historical drilling and sampling results demonstrate potential to classify the project as one of merit but are considered too speculative geologically to complete a NI 43-101 compliant resource estimation at this time and it is uncertain that those historic results will be converted into minerals resources.
Alan M. Clegg Pr. Eng PMP Pr.CPM FSAIMM, is responsible for the technical part of this press release and is the designated Qualified Person under the terms of National Instrument 43-101.
Turkey is considered as one of the most prospective and mining friendly country. Their recent amendments to the mining legislation and Investment incentive scheme provide value added taxes exemptions, custom duty exemptions, reduced royalty for strategic metals employee income tax relief and 80% tax reduction rate for certain projects depending on thier geographical position within the country. Large companies such as Eldorado Gold, Teck Resources, Inmet Mining, and First Quantum Minerals are operating in Turkey currently.
About the Private Placement
The Company has modified the terms of its recently announced non-brokered private placement for gross proceeds of up to $2 million (“the Offering”).
The non-brokered private placement will comprise up to 10,000,000 units (the “Units”) of Deep-South, at a subscription price of $0.20 per Unit. Each Unit will consist of one (1) common share and one half (1/2) of one common share purchase warrant (“Warrant”) of Deep-South. Each full Warrant will entitle the holder thereof to purchase one (1) Deep-South common share at an exercise price of $0.30 during a period of thirty-six (36) months from the date of closing of the placement. Each security issued pursuant to the placement has a mandatory four (4) months holding period from the date of closing of the placement.
The private placement 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 Teck Resources Ltd, which holds about 35% of Deep-South share capital. Deep-South is actively involved in the acquisition, exploration and development of major mineral properties. Deep-South currently holds 100% of the Haib Copper project in Namibia, one of the largest copper porphyry in Africa. Deep-South growth strategy is to focus on the exploration and development of quality assets, in significant mineralized trends, 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.
More information is available by contacting Pierre Léveillé, President & CEO at
+1-819-340-0140 or at: firstname.lastname@example.org or
Paradox Public Relations at +1-514-341-0408.
Cautionary statement on forward-looking information
Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws.
Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of this release.
All such forward-looking information and statements are based on certain assumptions and analyses made by Deep-South’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices, including the price of copper; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the results of economic studies and evaluations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading “Risk Factors” in the company’s most recently filed MD&A filed by Deep-South. Readers are cautioned not to place undue reliance on forward-looking information or statements. The factors and assumptions used to develop the forward-looking information and statements, and the risks that could cause the actual results to differ materially are set forth in the “Risk Factors” section and elsewhere in the company’s most recent Management’s Discussion and Analysis report and Annual Information Form, available at www.sedar.com.
This news release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i) fluctuations in copper prices or other mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies; (iv) changes to proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licences, or changes to any such permits, approvals or licence.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.