(TheNewswire)
Vancouver, B.C., Canada / TheNewswire / June 28, 2018 – Deep-South Resources Inc. (" Deep-South " or “ the Company ") (TSX-V: DSM) announces that it has signed a licence agreement
(“Agreement”) with Alexander Mining (“Alexander”), to a cquire 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 is conditional on Deep-South
completing the acquisition of a 75 per cent equity interest in 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 Licences, 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-to-acquire-75-of-the-kapili-tepe-copper-nickel-cobalt-and-gold-project-in-turkey-will-proceed-with-a-private-placement-and-will-seek-a-listing-in-london/
Deep-South proposes to delineate a NI 43-101 Compliant Mineral Resource Estimate and then decide on whether to
conduct a Preliminary Economic Assessment (“PEA”), which would be followed by a Pre-Feasibility Study (“PFS”) for the estimation of
a potential construction of a mine. Both the PEA and PFS work will include investigating a mineral processing plant at the Kapili
Tepe Project using Alexander’s Leaching Technologies.
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:
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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.
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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.
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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 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.
Martin Rosser, Chief Executive Officer, said: “Alexander’s interest in the Kapili Tepe Project goes back
several years and we are delighted that a potential strong new owner is now interested in progressing the Kapili Tepe Project.
We look forward to working closely together with Deep-South on this project, which has significant potential for the use of
our Leaching Technologies.”
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 the Private Placement
The Company has modified the terms of its recently announced non-brokered private placement for gross proceeds
of up to $2 million (“the Offering”).
The non-brokered private placement will comprise up to 10,000,000 units (the “Units”) of Deep-South, at a
subscription price of $0.20 per Unit. Each Unit will consist of one (1) common share and one half (1/2) of one common share
purchase warrant (“Warrant”) of Deep-South. Each full Warrant will entitle the holder thereof to purchase one (1) Deep-South
common share at an exercise price of $0.30 during a period of thirty-six (36) months from the date of closing of the placement.
Each security issued pursuant to the placement has a mandatory four (4) months holding period from the date of closing of the
placement.
The private placement is subject to the approval of the TSX Venture Exchange.
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, c los e 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: info@deepsouthresources.com 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 made 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 of 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 depend, 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) the 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.
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