Mr. Chris Stannell reports
TECK INCREASING INTEREST IN DEEP-SOUTH THROUGH SETTLEMENT AND AMENDING AGREEMENT
Teck Resources Ltd. and a wholly owned subsidiary have entered into an amending agreement with Deep-South Resources Inc. to settle past due amounts owing by Deep-South from the previously announced sale of the 70-per-cent interest in Haib Minerals Pty. Ltd.
Past amounts due to Teck will be settled through the issuance of 4,352,941 shares of Deep-South to Teck at an implied price of 8.5 cents per share with closing subject to approval of the TSX Venture Exchange. Teck also holds a convertible debenture with a principal amount of $389,117 convertible at 14 cents per common share with a maturity date on Aug. 31, 2020. The parties have agreed to amend the convertible debenture by extending the maturity to Dec. 31, 2021, and reducing the conversion price to nine cents per common share.
The settlement shares issued on closing, together with the 18,226,667 common shares currently held by Teck, will result in Teck holding approximately 26.9 per cent of Deep-South's outstanding shares on an undiluted basis, or 30.5 per cent on a partially diluted basis assuming the conversion of the principal amount of the convertible debt held by Teck. Exercise of the principal amount of the convertible debt would result in Teck acquiring 4,323,522 additional common shares of Deep-South.
Teck may determine to increase or decrease its holdings in Deep-South depending on market conditions and any other relevant factors. This release is required to be issued under the early warning requirements of applicable securities laws.
About Teck Resources Ltd.
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy.
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