Haib projects gets financial boost

By Hilary Mare

DEEP South Resources has closed a second tranche of the non-brokered private placement for N$12 million with the two tranches of the private placement now having totalled close to N$30 million.

The company has said that the funds will be used towards further exploration and development of the Haib copper project in Namibia and for general working capital.

The second tranche of the offering comprises 10 400 000 units of Deep South with each unit consisting of one common share and one half of one common share purchase warrant.  Each full warrant entitles the holder thereof to purchase one common share at an exercise price for 36 months from the date of closing of the placement. Each security issued has a mandatory four-month hold period from the date of closing of the placement.

“We are very happy to have closed this offering with a strong demand. We have already started to plan the coming infill drilling programme and we are confident it will bring strong added value for our shareholders. We will communicate the complete programme to our shareholders upon completion of the planning,” said Deep South chairperson John Akwenye.

The Haib project is a large copper-molybdenum porphyry deposit located in the //Karas region, 8 km from the Orange River and the South African border.

The deposit is a porphyry copper-molybdenum dating from the Archean age. The Haib deposit is arguably the oldest porphyry deposit in the world, which hosts easily identifiable porphyry veins and alteration. The principal mineralised hosts at Haib are a quartz feldspar porphyry and a feldspar porphyry rock. The main ore mineral at Haib is chalcopyrite, but minor amounts of bornite, chalcocite and the various green copper oxides can also be found.

For the second tranche, the company has paid finders fees totalling N$750 000 and 966 800 broker warrants that have the same terms than the warrants comprised in the offering.

The complete offering closed comprises 24 132 000 units of Deep South with each unit consisting of one common share and one half of one common share purchase warrant.

Deep South Resources is a mineral exploration company largely held by Namibian shareholders and Management with 25 percent and Teck Resources Ltd with 28 percent of Deep South share capital. Deep South currently holds 100 percent of the Haib Copper project in Namibia, one of the largest copper porphyry deposits in Africa.

Deep South also holds 75 percent of the Kapili Tepe Copper exploration project in Turkey.

Deep South Resources’ growth strategy is to focus on the exploration and development of quality assets, in significant mineralised zones, close to infrastructure, in stable countries.