Deep-South Closes 75 Percent Acquisition of Kapili Tepe Project

- May 7th, 2019

Deep-South Resources has closed the acquisition of a 75-percent stake in RCR Quantum, a Turkish company that holds Kapili Tepe copper-nickel-cobalt-gold project.

Deep-South Resources (TSXV:DSM) has received approval from Turkey’s Ministry of Energy and Natural Resources to close the acquisition of a 75-percent stake in RCR Quantum, a Turkish company that holds Kapili Tepe copper-nickel-cobalt-gold project.

As stated in the press release:

Deep-South has acquired all the common shares held by the seller in Quantum for the following considerations:

  • Deep-South has previously issued 3.5 million of its common shares to the seller that were kept in trust until the approval of the Ministry. The agreement has been amended to include the following: the shares issued to the Seller are restricted of trading for a period of 3 years. 1/6 of the shares (583,333 shares) shall be liberated of the restriction every six months starting on May 1st 2019. The shares relieved from restriction will be free for trading. Upon completion of a first NI 43-101 resource estimation or a listing of Deep-South shares on a London Stock Market, all the shares shall be liberated and free for trading;

  • This Article has been amended as follows: Upon closing of a first financing of $1 million or more or the cumulative closing of financings totalling $1 million or more following the closing of the acquisition of Quantum, Deep-South shall pay US $110,000 to the seller. The amount has been reduced by US$40,000 to compensate and duly adjust the warranties;

  • Upon completion of a resources estimation prepared in accordance with CIM definitions and compliant with the National Instrument 43-101, estimating an inferred resource totalling a minimum of 20 million tonnes at a minimum grade of 1 percent copper equivalent, Deep-South shall issue additional common shares to the Seller at a valuation of C$2 million;

  • In the case that the first resources estimation prepared in accordance with CIM definitions and compliant with the NI 43-101 or any further NI 43-101 compliant resource estimation, estimates an inferred resource totalling a minimum of 100 million tonnes at a minimum grade of 1 percent copper equivalent, Deep-South shall issue additional common shares to the seller at a valuation of C$2 million.

John Akwenye, Deep-South Chairman, commented:

“We are very enthusiastic with this transaction. We are securing a large area in the heart of a highly prospective area in one of the most mining friendly countries in the world. Kapili Tepe is a high-quality asset that adds strong value for our shareholders.”

Click here to read the full press release from Deep-South Resources.

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