Teck Namibia plots share interest in Deep South
By Business Reporter
TORONTO Stock Exchange-listed Deep South Resources and Teck Namibia, a wholly owned subsidiary of Teck Resources, have agreed to amend the sale agreement of February 2017, whereby Deep-South acquired Teck’s interest in the Haib Copper project, in Namibia.
The sale agreement stipulated that Deep-South make cash payments to Teck Namibia of US$200 000 on the first anniversary of the agreement and US$200 000 on the second anniversary of the agreement.
Deep-South has completed cash payments of US$30 000 but US$370 000 is outstanding and past due.
Teck has agreed to settle this amount through the issuance of shares in Deep-South.
The shares issued pursuant to the settlement have a mandatory four-month holding period from the date of closing.
Following closing, Teck will hold 26.9 percent of the share capital of Deep-South on an undiluted basis.
Moreover, Teck holds a convertible debenture with a principal value of US$389 117 and convertible at US$0.14 with a maturity date on August 31.
The parties have agreed to amend the convertible debenture and extend the maturity to December 31 2021 at a new conversion price of US$0.09.
The transaction is subject to the approval of the TSX Venture Exchange.
Deep-South Resources Inc. is a mineral exploration company largely held by Namibian shareholders and management with 24 percent and Teck Resources Limited with 23 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 an investment of 75 percent in the Kapili Tepe Copper exploration project in Turkey. Deep-South’s growth strategy is to focus on the exploration and development of quality assets, in significant mineralised zones, close to infrastructure, in stable countries.