VANCOUVER, BC,
April 14, 2022 /CNW/ -
Deep-South Resources Inc. ("Deep-South" or the Company)
(TSXV: DSM) announces further to a discussion with the TSX Venture
Exchange concerning the documents related to the Zambian
exploration licences acquisition announced on April 7, 2022, Deep-South expect to resume
trading on Tuesday April 19,
2022.
Deep-South has signed a definitive earn-in agreement with World
Class Mineral Ventures Ltd ("WCMV") of Zambia to acquire up to 80% of three copper
exploration licences in the center of the Zambian Copper belt, one
of the most prolific copper belts in the world.
The agreement:
Deep-South holds the option to acquire up to 80% of the Large
Scale Exploration Licences LEL 23246, LEL 23247 and LEL 23248
held by WCMV in Zambia.
The terms are as follows:
Data Acquisition:
- Deep-South has paid to WCMV, US $
15,000 on signature of the agreement and will pay an
additional US $ 15,000 on approval of
the transaction by the TSX Venture Exchange ("TSX-V"). Deep-South
will also issue 500,000 of its common shares to WCMV upon approval
by the TSX-V.
- On the second anniversary of the agreement, Deep-South will pay
US$ 30,000 and issue 250,000 of its
common shares to WCMV.
- Before the end of the second anniversary of the agreement,
Deep-South will also complete the collection and analysis of 100
soil samples over the identified anomalies on Licence LEL 23246 and
350 soil samples over the identified targets on each of Licences
LEL 23247 and LEL 23248. Deep-South will then decide whether to
proceed with more intensive sampling or to evaluate any drilling
targets.
- Upon completion of the above, Deep-South will have acquired an
undivided interest in 51% of the licences.
- In order to acquire the remaining 29% of the licences,
Deep-South, at the end of the third, fourth and fifth year of the
agreement, will pay to WCMV US$
30,000 every year for a total of US 90,000, issue 1 million
of its common shares to WCMV at the end of the fourth year and
spend a minimum of US$ 1 million in
exploration programmes every year for a total of US $ 3 million in exploration expenditure.
Please note that the issuance of 1 million common shares of
Deep-South was ommitted in the press release dated
April 7, 2022.
Upon approval of the transaction with WCMV by TSX-V, Deep-South
will acquire all of the exploration data for the licences LEL
23246, LEL 23247 and LEL 23248 held by Mr. Nathan Sabao ("the
geological consultant"). Upon approval of the TSX-V, Deep-South
will issue 500,000 of its common shares to the geological
consultant. Furthermore, on the first anniversary of the
transaction, the geological consultant will transfer to Deep-South
all of the exploration data for projects in the Luapula region in
consideration for the issuance of a further 500,000 common shares
of Deep-South.
The transaction is conditional to the approval of the TSX
Venture Exchange.
Finder's fee:
Upon closing of the option agreement and data acquisition
agreement, Deep-South will issue 350,000 of its common shares in
payment for a finder's fee to Gestion Karl Mansour Inc.
The transaction with the data acquisition and finder's fee are
at arm's length with Deep-South.
About World Class Mineral Ventures Ltd:
WCMV is a Zambian private exploration company held in equal part
by Mr. Kavumba Ngoma, Mr. Nathan Sabao and Mr. Chisunka
Chileya Mpundu
The projects: (see map 1 below)
Luanshya West project (LEL 23247). The licence is
situated in the center of the Zambian Copper belt which forms part
of the Central African Copper belt, one of the most prolific copper
belts in the world. The Large Exploration Licence covers 5,423.26
hectares (54.24 Sq. Km).
A NI 43-101 technical qualifying report is currently under
review by the TSX-V.
The project prospectivity is based on the location of the
subject property over the unconformable contact zone between
basement granites and Lower Roan Group sediments where most copper
belt mines in both Zambia and the
Democratic Republic of Congo (the
"DRC") are located. This prospectivity is reinforced by a positive
series of coincident soil geochemical anomalies over the contact
zone.
The project area is close to established copper / cobalt mines
with Chibuluma mine some 35Km to the north-east, Chambishi mine
41Km north-northeast, N'changa mine 53Km north-northwest and
Luanshya mine some 40Km east-southeast from the centre of the
project area.
Some 850 soil samples and some geophysical data were collected
over the subject property by Teal (a subsidiary of African Rainbow
Minerals Ltd) between 2007 and 2009. The airborne geophysical data
was evaluated by the geophysical consultant K. P. Knupp on behalf
of Teal. Knupp identified a total of 11 targets for strata- bound
vein-hosted Cu, Pb, Zn, Co, Ni, Ag and Au mineralisation and 1
target for stratiform Cu-Co mineralisation over the larger
exploration property then held by Teal.
Chililabombwe project (LEL 23247). The licence is
situated in the north of the Zambia Copper belt near the DRC
border. The Large Exploration Licence covers 2,200 hectares (22.5
Sq, Km).
The project prospectivity is based on the location of the
subject property over the unconformable contact zone between
basement granites and Lower Roan Group sediments where most copper
belt mines in both Zambia and the
Democratic Republic of Congo (the
"DRC") are located.
The project area is close to established copper / cobalt mines
with Konkola mine 12 km west and the Lubambe mine 30 km to the
north-west from the center of the project area.
Mpongwe project (LEL 23248). The licence is situated in
the center of the Zambian Copper belt. The Large Exploration
Licence covers 67,500 hectares (675 Sq. Km).
The project prospectivity is based on the location of the
subject property over the unconformable contact zone between
basement granites and Lower Roan Group sediments where most copper
belt mines in both Zambia and the
Democratic Republic of Congo (the
"DRC") are located.
More information about the projects and the planned programmes
will be disclosed after closing of the transaction.
Mineral Resources have not been estimated yet on the project
nor has it demonstrated economic viability at this stage. The
historical geophysical survy 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.
Qualified Person
Peter Walker B.Sc. (Hons.) MBA
Pr.Sci.Nat. of P & E Walker Consultancy is the main
author of the 43-101 resource qualification report on LEL 23246,
and is the Qualified Person under the terms of National Instrument
43-101. Mr. Walker is responsible for the technical part of this
press release.
About Deep-South Resources Inc
Deep-South Resources is a mineral exploration and development
company. Deep-South's growth strategy is to focus on the
exploration and development of quality assets in significant
mineralized trends and in proximity to infrastructure in stable
countries. In using and assessing environmentally friendly
technologies in the development of its copper project, Deep-South
embraces the green revolution.
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.
Caution Regarding Forward-Looking
Information
Information contained in this news release which are not
statements of historical facts may be "forward-looking information"
for the purposes of Canadian securities laws. Such
forward-looking information involves risks, uncertainties and other
factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward looking information. The words "believe",
"expect", "anticipate", "contemplate", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule",
"understand" and similar expressions identify forward-looking
information. These forward-looking statements relate to,
among other things: the Minister's refusal to renew the Company's
Licence, the Company's intention to contest the Minister's decision
before the Courts of Namibia and
the outcome of such proceedings.
Forward-looking information is necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by Deep-South, are inherently subject to significant
technical, political, business, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking information. Factors and assumptions that could
cause actual results or events to differ materially from current
expectations include, among other things: political risks
associated with the Company's operations in Namibia; the failure of the Namibian
Government to comply with its continuing obligations under the Act
to allow for the renewal of the Licence; the impact of changes in,
or to the more aggressive enforcement of, laws, regulations and
government practices; the inability of the Company and its
subsidiaries to enforce their legal rights in certain
circumstances. For additional risk factors, please see the
Company's most recently filed Management Discussions & Analysis
available on SEDAR at www.sedar.com.
There can be no assurances that forward-looking information
and statements will prove to be accurate, as many factors and
future events, both known and unknown could cause actual results,
performance or achievements to vary or differ materially from the
results, performance or achievements that are or may be expressed
or implied by such forward-looking statements contained herein or
incorporated by reference. Accordingly, all such factors should be
considered carefully when making decisions with respect to
Deep-South, and prospective investors should not place undue
reliance on forward looking information. Forward-looking
information in this news release is made as at the date hereof. The
Company assumes no obligation to update or revise forward-looking
information to reflect changes in assumptions, changes in
circumstances or any other events affecting such forward-looking
information, except as required by applicable law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/deep-south-expect-to-resume-trading-on-tuesday-april-19-2022-301526168.html
SOURCE Deep-South Resources Inc.