Deep-South Resources Closes the Licence Agreement with Alexander Mining FOR a Leaching Technology FOR the Kapili Tepe Project IN Turkey
Suite 162, 2912 West Broadway, Vancouver, British Columbia, V6K 0E9
Tel : 604-340-0140. E-mail : [email protected]
Web site: http://www.deepsouthresources.com
DEEP-SOUTH RESOURCES CLOSES THE LICENCE AGREEMENT WITH
ALEXANDER MINING FOR A LEACHING TECHNOLOGY FOR THE KAPILI TEPE
PROJECT IN TURKEY
Vancouver, B.C., Canada – May 8, 2019 – Deep-South Resources Inc. ("Deep-South" or “the
Company") (TSX-V: DSM) announces that it has closed the 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 was conditional on Deep-South completing the acquisition of a 75 per cent equity
interest in the Kapili Tepe Project, which has been closed and announced on May 7, 2019.
About the licence agreement
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:
I. 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.
II. 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.
III. 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 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 L icences, which are contiguous. The licensed area covers
approximately 5,240 hectares. For more information about the project, please follow this link:
https://www.deepsouthresources.com/investors/news-releases/deep-south-resources-has-
closed-the-acquisition-of-75-of-the-kapili-tepe-copper-nickel-cobalt-and-gold-project-in-turkey/
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.
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.
About Turkey
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 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: [email protected] 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 m ade 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 o f 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 de pend, 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) t he 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.