Deep-South Resources Intends to Acquire 75% of the Inal Property Neighboring the Kinross Tasiast GOLD MINE IN Mauritania
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 INTENDS TO ACQUIRE 75% OF THE INAL
PROPERTY NEIGHBORING THE KINROSS TASIAST GOLD MINE IN
MAURITANIA
Vancouver, B.C., Canada – August 23, 2017 – Deep-South Resources Inc. ("Deep-
South" or “the Company") (TSX-V: DSM) is pleased to announce that it has signed a
letter of agreement (the “ Letter of Agreement”) to acquire from Suricate SARL
(“Suricate”), 75% of the INAL project, neighboring the Kinross Tasiast gold mine
situated in the northwest of Mauritania.
Upon completion of a satisfactory due diligence, Deep -South shall acquire a 75%
beneficial interest in the INAL project in consideration for a cash payment of
US $ 20,000.00 and the issuance of 500,000 common shares of Deep -South. The
respective interests of both Parties will be held into a joint-venture company (Holdco).
Furthermore, Deep-South shall incur the following payments and shares issuance to
Suricate:
On Cash Payments Shares Issuance
First Anniversary of Closing Date US$ 100,000 250,000
Second Anniversary of Closing Date US$ 100,000 250,000
Third Anniversary of Closing Date US$ 100,000 250,000
In addition to the above mentioned consideration, pursuant to the Letter of Agreement
Suricate is entitled to a production bonus of US $ 1 million to be paid on the first day of
commercial production commencement;
Deep-South shall finance all the exploration expenditures up to a production decision.
Upon the day of a commercial production decision, Suricate shall contribute its share of
the eventual mine development. Deep-South intends to hire Suricate to act as its
representative in Mauritania for a period of 24 months from the Closing Date at a rate of
US$2,500 per month.
Upon closing, Sparrowhawk Gold Limited, a geological consulting company, has
analyzed the project and upon closing will receive a compensation of US $ 3,500 and
50,000 common shares of Deep-South. After the first anniversary of the Letter of
Agreement, Deep-South shall retain the services of Sparrowhawk for the 3 subsequent
years of the project for a cash compensation of US $ 10,000 per year and the issuance
of 30,000 common shares per year .
The Letter of Agreement, and the transactions c ontemplated therein, including the
shares issuance are subject to approval by the TSX Venture Exchange. All securities
issued pursuant to the Letter of Agreement and to Sparrowhawk Gold Limited will be
subject to a hold period of four months and a day from the date of issuance.
Mr. John Akwenye, Chairman of Deep -South stated, “We are delighted with this
transaction. We are securing a large area in the heart of a promising area that already
host a large gold mine and several discoveries . INAL has substantial exploration
potential. It is a strong addition to our Haib copper project in Namibia. INAL is a quality
asset that adds strong value for our shareholders.”
About the INAL Project: Gold and Lithium potential
The INAL project is situated within the Aoueouat Greenstone Belt of North West
Mauritania (see maps at: https://www.deepsouthresources.com/projects/inal-property/).
The project comprises two exploration licenses covering an area of 441 square
kilometres located some 45 kilometres North East along trend from Kinross’s Tasiast
gold deposit, and is adjacent to Kinross’s N’Daouas -Est and Algold’s Legouessi
exploration licenses. The project covers prime granite greenstone belt terrain and host a
number of geological structures extending from the Kinross licenses through, and onto,
the INAL licenses. These structures, including a banded iron formation that hos ts the
Tasiast deposit, have the potential to host gold mineralization.
Furthermore, the INAL project also hosts a number of pegmatite bodies with confirmed
spodumene and lepidolite mineralization. The pegmatite bodies have been identified by
intermittence over a length of at least 40 km and a width of over 10 km, and represent
very prospective targets for lithium mineralization.
North Western Mauritania is underlain by the South Western portion of the Reguibat
Shield, which forms part of the West African Craton. The Reguibat Shield host Archaean
age Greenstone Belts that bear many similarities to other Archaean age Greenstone
Belts of the West African Craton, most notably in Ghana, Burkina Faso, Mali and others,
which all host multi-million ounce gold deposits.
Clifford Fitzhenry; MSc, BSc (Hons), Pr.Sci.Nat., 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 Deep-South Resources Inc.
Deep-South Resources Inc. is a mineral exploration company largely held 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 Paradox Public Relations at
+1-514-341-0408 or at [email protected].