Mr. Pierre Leveille reports
DEEP-SOUTH AMENDS AGREEMENT TO ACQUIRE OUTSTANDING INTEREST IN THE HAIB COPPER DEPOSIT IN NAMIBIA
Teck Namibia Ltd., a wholly owned subsidiary of Teck Resources Ltd., and Deep-South Resources Inc. have agreed to amend the sale agreement dated Feb. 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-month holding period from the date of closing.
Following closing, Teck will hold 22,579,608 shares of Deep-South, representing 26.9 per cent of the share capital of Deep-South on an undiluted basis.
Furthermore, Teck holds a convertible debenture with a principal value of $389,117, convertible at 14 cents with a maturity date on Aug. 31, 2020. The parties have agreed to amend the convertible debenture and extend the maturity to Dec. 31, 2021, at a new conversion price of nine cents. The convertible debenture shall continue to bear interest on the outstanding principal amount at a rate of LIBOR (London interbank offered rate) plus 2 per cent 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 is a mineral exploration company. It currently holds 100 per cent of the Haib copper project in Namibia, one of the largest copper porphyry deposits in Africa. Deep-South also holds an investment of 75 per cent in the Kapili Tepe copper exploration project in Turkey.
© 2020 Canjex Publishing Ltd. All rights reserved.