Deep-South to Acquire up to 80% of Three Copper Exploration Licences IN the Heart of the Zambia Copper Belt
DEEP-SOUTH TO ACQUIRE UP TO 80% OF THREE COPPER
EXPLORATION LICENCES IN THE HEART OF THE ZAMBIA COPPER BELT
VANCOUVER, BC
,
April 7, 2022
/CNW/ - Deep-South Resources Inc. ("
Deep-South
" or the Company) (TSXV: DSM) announces the signature of a definitive
earn-in agreement with Word Class Minerals Venture Ltd ("WCMV") of
Zambia
to acquire up to 80% of three copper exploration licences in the center of the
Zambian Copper belt, one of the most prolific copper belt
s
in the world.
John Akwenye, Chairman
of Deep-South stated that:
"While reinstating the licence over the Haib Copper project in
Namibia
remains our number one
priority, we are very enthusiastic about the option to acquire these strategicaly well situated licences in the heart of one of the most prolific copper
belts in the world".
The agreement:
Deep-South holds the option to acquire up to 80% of the Large Scale Exploration Licences LEL 23246, LEL 23247 and LEL 23248 held by WCMV in
Zambia
.
The terms are as follows:
Deep-South has paid to WCMV, US
$ 15,000
on signature of the agreement and will pay an additional US
$ 15,000
on approval of the transaction by the TSX
Venture Exchange ("TSX-V"). Deep-South will also issue 500,000 of its common shares to WCMV upon approval by the TSX-V.
On the second anniversary of the agreement, Deep-South will pay
US$ 30,000
and issue 250,000 of its common shares to WCMV.
Before the end of the second anniversary of the agreement, Deep-South will also complete the collection and analysis of 100 soil samples over the identified
anomalies on Licence LEL 23246 and 350 soil samples over the identified targets on each of Licences LEL 23247 and LEL 23248. Deep-South will then
decide whether to proceed with more intensive sampling or to evaluate any drilling targets.
Upon completion of the above, Deep-South will have acquired an undivided interest in 51% of the licences.
In order to acquire the remaining 29% of the licences, Deep-South, at the end of the third, fourth and fifth year of the agreement,will pay to WCMV
US$
30,000
every year for a total of US 90,000 and spend a minimum of
US$ 1 million
in exploration programmes every year for a total of US
$ 3 million
in
exploration expenditure.
Data Acquisition:
Upon approval of the transaction with WCMV by TSX-V, Deep-South will acquire all of the exploration data for the licences LEL 23246, LEL 23247 and LEL
23248 held by Mr. Nathan Sabao ("the geological consultant"). Upon approval of the TSX-V, Deep-South will issue 500,000 of its common shares to the
geological consultant. Furthermore, on the first anniversary of the transaction, the geological consultant will transfer to Deep-South all of the exploration data for
projects in the Luapula region in consideration for the issuance of a further 500,000 common shares of Deep-South
.
The transaction is conditional to the approval of the TSX Venture Exchange. In terms of the Policy 5.3, the transaction is considered fundamental and the trading
of the shares of Deep-South will remain on a halted until the TSX-V has reviewed the required documentation.
The projects:
(see map 1 below)
Map 1 - The Projects (CNW Group/Deep-South Resources Inc.)
Luanshya West project (LEL 23247)
. The licence is situated in the center of the Zambian Copper belt which forms part of the Central African Copper belt, one
of the most prolific copper belts in the world. The Large Exploration Licence covers 5,423.26 hectares (54.24 Sq. Km).
A NI 43-101 technical qualifying report is currently under review by the TSX-V.
The project prospectivity is based on the location of the subject property over the unconformable contact zone between basement granites and Lower Roan
Group sediments where most copper belt mines in both
Zambia
and the
Democratic Republic of Congo
(the "DRC") are located. This prospectivity is reinforced
by a positive series of coincident soil geochemical anomalies over the contact zone.
The project area is close to established copper / cobalt mines with Chibuluma mine some 35Km to the north-east, Chambishi mine 41Km north-northeast,
N'changa mine 53Km north-northwest and Luanshya mine some 40Km east-southeast from the centre of the project area.
Some 850 soil samples and some geophysical data were collected over the subject property by Teal (a subsidiary of African Rainbow Minerals Ltd) between
2007 and 2009. The airborne geophysical data was evaluated by the geophysical consultant K. P. Knupp on behalf of Teal. Knupp identified a total of 11 targets
for strata- bound vein-hosted Cu, Pb, Zn, Co, Ni, Ag and Au mineralisation and 1 target for stratiform Cu-Co mineralisation over the larger exploration property
then held by Teal.
Chililabombwe project (LEL 23247)
. The licence is situated in the north of the Zambia Copper belt near the DRC border. The Large Exploration Licence covers
2,200 hectares (22.5 Sq, Km).
The project prospectivity is based on the location of the subject property over the unconformable contact zone between basement granites and Lower Roan
Group sediments where most copper belt mines in both
Zambia
and the
Democratic Republic of Congo
(the "DRC") are located.
The project area is close to established copper / cobalt mines with Konkola mine 12 km west and the Lubambe mine 30 km to the north-west from the center of
the project area
.
Mpongwe project (LEL 23248)
. The licence is situated in the center of the Zambian Copper belt. The Large Exploration Licence covers 67,500 hectares (675
Sq. Km).
The project prospectivity is based on the location of the subject property over the unconformable contact zone between basement granites and Lower Roan
Group sediments where most copper belt mines in both
Zambia
and the
Democratic Republic of Congo
(the "DRC") are located.
More information about the projects and the planned programmes will be disclosed after closing of the transaction.
Mineral Resources have not been estimated yet on the project nor has it demonstrated economic viability at this stage. The historical geophysical survy 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.
Qualified Person
Peter Walker B.Sc.
(Hons.) MBA Pr.Sci.Nat. of P & E Walker Consultancy is the main author of the 43-101 resource qualification report on LEL 23246, and is the
Qualified Person under the terms of National Instrument 43-101. Mr. Walker is responsible for the technical part of this press release.
About Deep-South Resources Inc
Deep-South Resources is a mineral exploration and development company. Deep-South's growth strategy is to focus on the exploration and development of
quality assets in significant mineralized trends and in proximity to infrastructure in stable countries. In using and assessing environmentally friendly technologies in
the development of its copper project, Deep-South embraces the green revolution.
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.
Caution Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts may be "forward-looking information" for the purposes of Canadian
securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate",
"contemplate", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", "understand" and similar expressions identify forward-looking
information. These forward-looking statements relate to, among other things: the Minister's refusal to renew the Company's Licence, the Company's intention
to contest the Minister's decision before the Courts of
Namibia
and the outcome of such proceedings.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Deep-South, are
inherently subject to significant technical, political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in the forward-looking information. Factors and assumptions that could cause actual results or
events to differ materially from current expectations include, among other things: political risks associated with the Company's operations in
Namibia
; the
failure of the Namibian Government to comply with its continuing obligations under the Act to allow for the renewal of the Licence; the impact of changes in, or
to the more aggressive enforcement of, laws, regulations and government practices; the inability of the Company and its subsidiaries to enforce their legal
rights in certain circumstances. For additional risk factors, please see the Company's most recently filed Management Discussions & Analysis available on
SEDAR at
www.sedar.com
.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and
unknown could cause actual results, performance or achievements to vary or differ materially from the results, performance or achievements that are or may
be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered
carefully when making decisions with respect to Deep-South, and prospective investors should not place undue reliance on forward looking information.
Forward-looking information in this news release is made as at the date hereof. The Company assumes no obligation to update or revise forward-looking
information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by
applicable l
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%SEDAR: 00005247E
For further information:
Pierre Léveillé, President & CEO at +1-819-340-0140 or at: [email protected]
CO: Deep-South Resources Inc.
CNW 13:10e 07-APR-22