Deep-South Debenture Sold and Converted to Shares
Suite 888, 700 West Georgia, Vancouver, British Columbia, V7Y 1G5
Tel: +1-819-340-0140. E-mail: [email protected]
Web site: http://www.deepsouthresources.com
DEEP-SOUTH DEBENTURE SOLD AND CONVERTED TO SHARES
Vancouver, B.C., Canada – April 15, 2021 – Deep-South Resources Inc. ("Deep-South"
or “the Company") (TSX-V: DSM) announces that Teck Resources Limited (“Teck”) has
has signed agreements to sell the convertible debenture it holds with Deep-South to third
party investors.
The convertible debenture has a principal value of $389,117 and is convertible into
common shares of Deep-South at a conversion price of $0.115 per common share
and has a maturity date of August 30, 2021. 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. On March 31, 2021, the accrued interest
is valued at $60,962. Upon closing of the transaction, the purchaser of the convertible
debenture will convert the debenture into 3,913,730 common shares of Deep-South.
Pierre Leveille, President & CEO of Deep-South stated, "We are pleased with this
transaction. Our balance sheet is now debt free and we are well funded to advance
the development of the Haib Copper project throughout 2021.”
Following the sale of the convertible debenture and its conversion by the purchaser
as described above, Teck holds 22,579,608 common shares of Deep-South,
representing approximately 15.7% of the issued and outstanding common shares of
the company. Teck may determine to increase or decrease its holdings in Deep-South
depending on market conditions and any other relevant factors. A copy of Teck’s early
warning report may be obtained from Chris Stannell, Public Relations Manager, Teck
at 604.699.4368 or [email protected].
About Deep-South Resources Inc.
Deep-South Resources is a mineral exploration and development company. Deep-South
holds 100% of the Haib Copper deposit in the south of Namibia. Haib is one of the largest
undeveloped copper deposits in Africa. The recent preliminary economic assessment
demonstrated that at a price of copper of $3.00 / lb, it generates an after-tax NPV of $950
million and an after-tax IRR of 30%. At $4.00 / lb, it generates an after-tax NPV of $1,650
million and an after -tax IRR of 42%. (See the press release here:
https://www.deepsouthresources.com/investors/news-releases/deep-south-pea-update-
returns-singnificantly-improved-economics/)
Deep-South growth strategy is to focus on the exploration and development of quality
assets in significant mineralized trends and close to infrastructures in stable countries.
Furthermore, in using and assessing environmental friendly technologies in the
development of its copper project, Deep-South embraces the green revolution.
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: [email protected] or
Paradox Public Relations at +1-514-341-0408.