Momentum Reports – Deep South Resources – March 2017
Momentum Reports – Deep South Resources (DSM:tsxv)
[pdf-embedder url=”https://momentumpr.com/wp-content/uploads/2017/03/deepsouthresourcesreport1.pdf”]
- Published in Deep South Resources Inc., Mining
Deep-South Resources shareholders elect six directors
Deep-South Resources shareholders elect six directors
Mr. Tim Fernback reports
DEEP-SOUTH RESOURCES SHAREHOLDERS ELECT SIX DIRECTORS AT AGM
Deep-South Resources Inc. has released the voting results from the company’s annual general meeting (AGM) held in Vancouver, B.C., on Feb. 23, 2017.
A total of 22,294,176 common shares were represented at the AGM, representing 59.77 per cent of the votes attached to all outstanding common shares as at the record date. All of the matters submitted to the shareholders for approval as set out in the company’s notice of meeting and information circular, both dated Jan. 24, 2017, were approved by 100 per cent of the votes cast at the AGM.
Shareholders voted in favour of setting the number of directors at six and elected all incumbent directors. The details of the voting results are set out in the attached table.
Director Votes for {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} for Votes withheld {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} withheld John H. Akwenye 22,294,176 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} 0 0 Pierre Leveille 22,294,176 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} 0 0 Tim Fernback 22,294,176 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} 0 0 Ryan Cheung 22,294,176 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} 0 0 Hugo Monette 22,294,176 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} 0 0 Luke N. Nepela 22,294,176 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} 0 0
Shareholders also approve the reappointment of Morgan Company LLC as auditor of the company for the ensuing year at the remuneration to be set by the directors.
About Deep-South Resources Inc.
Deep-South Resources is a mineral exploration company with a large Namibian shareholding, actively involved in the acquisition, exploration and development of major mineral properties in Namibia and Canada.
We seek Safe Harbor.
© 2017 Canjex Publishing Ltd. All rights reserved.
- Published in Deep South Resources Inc., Mining, News Home
Shutdowns at Biggest Mines Extend Copper’s Best Rally in 5 Years
Shutdowns at Biggest Mines Extend Copper’s Best Rally in 5 Years
Copper is extending the best start to a year since 2012 after the world’s two biggest mines halted some operations.
The metal has rallied 11 percent this year, helped ongoing problems at Freeport-McMoRan Inc.’s Grasberg complex in Indonesia and BHP Billiton Ltd.’s Escondida mine in Chile. Futures for March delivery climbed 0.5 percent to $2.783 a pound at 1:18 p.m. on the Comex in New York, after earlier touching $2.823, the highest since May 2015.
“Copper’s been leading the way, but everything’s moved higher in a broad allocation back into metals,” Robin Bhar, an analyst at Societe Generale SA, said by phone from London. “We’ve had supply-side concerns which have boosted the market no end.”
Freeport-McMoRan suspended copper concentrate output at its giant Grasberg complex in Indonesia as the company continues to negotiate with the government over the terms of its mining permit.
Local unit PT Freeport Indonesia halted output at its copper mill Friday, Tri Puspital, a member of the industrial relations department at Grasberg’s labor union, said by phone Monday. The shutdown came after Freeport ran out of space to store copper that has been backing up at the site since last month, when its permit to export expired.
Read more about Freeport’s copper concentrate suspension at Grasberg.
An indefinite strike at BHP Billiton’s Escondida mine in Chile has also led the company to stop production and declare force majeure on its shipments. Over the weekend, a group of more than 300 people entered the mine site during the strike and forced some contractors to abandon the compound, BHP said.
“After the force majeure at Escondida on Friday, the market took off like a rocket,” Bhar said.
A 20-day stoppage at Escondida and a one-month delay to exports at Grasberg would result in an output loss of almost 100,000 tons, including 64,000 tons from the Chilean mine, Goldman Sachs Group Inc. said a note dated Feb. 8.
Macquarie Group Ltd. expects the BHP strike to last up to three weeks, London-based analyst Vivienne Lloyd said by e-mail. The dispute at Grasberg could be tougher to resolve, she said.
Copper rallied 5.5 percent last week in London and ranks third this year among the best-performing contracts tracked by the Bloomberg Commodity Index. Gains this year also come amid President Donald Trump’s promise to spend $1 trillion in infrastructure over the next 10 years.
“Definitely if copper output is at all sidelined with the talk about all this new spending in the U.S. and building we’re going to see an extension upwards, it could get pretty ugly,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview.
Mining stocks also advanced on Monday, with Teck Resources Ltd. gaining more than 3 percent
Money managers who cut their record bullish bet in copper last week missed out on the rally. Hedge funds and other large speculators lowered the net-long position in copper futures and options contracts by 15 percent, the most since October, according to Commodity Futures Trading Commission data released Friday.
- Published in Blog, Deep South Resources Inc., Mining
Deep South (DSM:tsxv) agrees to acquire 100 of Haib Copper Deposit
Deep-South Resources Agrees To Acquire 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Of Haib Copper Deposit In Namibia In Partial Share Deal
– Momentum Public Relation –
Press Release: February 15, 2017
Deep-South Resources Inc. (“Deep-South” or “the Company”) (TSX-V: DSM) is pleased to announce that it has entered into an agreement to acquire from Teck Namibia Ltd. (“Teck”), a wholly owned subsidiary of Teck Resources Limited, the remaining 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Haib Minerals (Pty) Ltd. (“Haib Minerals”) that it does not own in exchange for, among other things, 13.6 million common shares of Deep-South. Haib Minerals holds the Exclusive Prospecting Licence 3140 (“EPL 3140”), which hosts the Haib copper project (“Haib” or “the Property”) situated in the south of Namibia. At closing, Deep-South will hold 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Haib Minerals. At closing, in addition to its current shareholding, Teck will hold 17,776,667 of the common shares of Deep-South, representing about 35{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Company’s share capital based on the common shares currently outstanding.
In addition to the Deep-South shares to be issued to Teck, Deep-South shall:
– pay $400,000 to Teck in accordance with the following schedule:
– First anniversary of the agreement: $200,000
– Second anniversary of the agreement: $200,000
- –Teck shall hold a pre-emptive right to participate in any financing of Deep-South as long as Teck holds over 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Deep-South’s outstanding common shares;
- –Teck shall be granted a 1.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} NSR. Deep-South shall have the option to buy back 1/3 of the NSR in consideration for $ 2 million;
- –If Deep-South sells or options the Property or a portion of the Property during the 36 months following closing, Teck shall receive 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the sale gross proceeds if the sales occurs during the first 24 months after the closing and shall receive 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the gross proceeds if the sale occurs between the 24th and 36th months after closing;
- –Teck shall be entitled to a production bonus payment that will be declared at the time the company takes the decision to start mine development. Half of the bonus shall be paid upon the decision to start mine development and the second half shall be paid upon commencement ofcommercial production. The bonus value is scaled with the value of the Capital expenditures as follows:
(All amounts C$ millions)
Development Expenditures | Cash Payment |
$0 – $500 | $5.0 |
$501 – $600 | $6.7 |
$601 – $700 | $8.3 |
$701 – $800 | $10.0 |
$801 – $900 | $11.7 |
$901 – $1,000 | $13.3 |
$1,001 and over | $15.0 |
- –Teck’s shareholding will be topped-up post-closing (if necessary) so that Teck holds 35{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Deep-South’s share capital based on the outstanding common shares as of the closing date.
The agreement and shares issuance are subject to approval by the TSX Venture Exchange. This transaction constitute a fundamental change pursuing to the policies of the TSX Venture Exchange.
Mr. John Akwenye, Chairman of Deep-South stated, “We are delighted with this transaction. Haib is the largest known porphyry copper deposit in Africa and is situated in an ideal location adjacent to modern infrastructure and in one of the best mining countries in Africa. In becoming our largest shareholder, Teck is a strong shareholder to have in support of the Company. Haib has substantial exploration potential and is a quality asset that adds strong value for our shareholders.”
About the Haib Copper Project:
The Haib project is a large copper-molybdenum porphyry deposit located in the Karas region of southern Namibia, 8 km from the Orange River and the South African border.
The deposit, discovered in the 1950’s, has seen over 50,000 metres of drilling in the 1970’s by companies such as Rio Tinto and Falconbridge Ltd.
Since 2010, Teck Namibia has completed over 14,000 metres of drilling with results such as: 121 m @ 0.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu, 494 m @ 0.36{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu and 30 m @ 0.81{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu.
A report by Behre Dolbear, completed in 1996, has estimated a Historical Estimate at Haib in a range presented in the table below:
Haib Historical Estimate – Behre Dolbear / GSM | ||||||||
Cut-off
({92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}Cu) |
GFM Model | Behre Dolbear’s Model | ||||||
Kriging | Inverse Distance Squared | Nearest Neighbour | ||||||
Million Tonnes | Grade {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu | Million Tonnes | Grade {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu | Million Tonnes | Grade {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu | Million Tonnes | Grade {92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Cu | |
0.1 | 1350 | 0.23 | 1353 | 0.23 | 1331 | 0.23 | 1184 | 0.25 |
0.2 | 730 | 0.28 | 739 | 0.29 | 726 | 0.29 | 630 | 0.34 |
0.3 | 230 | 0.37 | 244 | 0.37 | 262 | 0.38 | 292 | 0.46 |
(GFM and Behre Dolbear models used the Kriging method as the basis for their estimate calculations. Kriging is a statistical estimation technique widely used for porphyry deposits. The Inverse Distance Squared and Nearest Neighbour methods, were used by Behre Dolbear for validation of the Kriging method estimates. Behre Dolbear report was produced from a geostatistical block model completed in 1996 by Great Fitzroy Mineral NL (“GFM”)).
The Historical Estimate comprised principally the compilation and verification of all the drillhole data incorporating all available data to the end of the Rio Tinto Zinc programme completed in 1975 and comprising over 50,000 metres of drilling, assays and survey data.
The estimates of tonnages and grades quoted in this report were prepared prior to publication of National Instrument 43-101 in 2001 and are considered as Historical Estimates. The historical grades and resources terminology from the original historical reports are to be used only as a reference and should not be considered as a current mineral resource under NI 43-101 but are to be considered as Historical Estimates as per the NI 43-101 Rules and Policies.
P & E Walker Consultancy (“The consultant”), were engaged to prepare a technical review of all the historical data and reports and to act as Qualified Person. The Consultant did not have the mandate to classify the Historical Estimate as current mineral resource under NI 43-101. Deep-South is not treating the Historical Resource as a current mineral resource under NI 43-101.
P & E Walker Consultancy has prepared a technical review of all the historical data and reports. The NI 43-101 qualification report can be found on SEDAR at www.sedar.com.
Peter Walker B.Sc. (Hons.) MBA Pr.Sci.Nat. is the author of the 43-101 qualifying report and 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 Deep-South Resources Inc.
Deep-South Resources Inc. is a mineral exploration company with a large Namibian shareholding, actively involved in the acquisition, exploration and development of major mineral properties in Namibia and Canada. Deep-South growth strategy is to focus on the exploration and development of quality assets, in significant mineralized trends, close to infrastructure, in stable countries.
- Published in Deep South Resources Inc., Mining, News Home
Deep-South (DSM:tsxv) appoints Leveille as CEO, Stuart-Willams as Vice-President Exploration and hires Paradox for Investor Relation
Deep-South appoints Leveille as CEO, Stuart-Willams as Vice-President Exploration and hires Paradox for Investor Relation
– Momentum Public Relations –
Press Release: January 23, 2017
Deep-South Resources inc. (DSM:tsxv) announces that it has appointed Pierre Léveillé as CEO and Vivian Stuart-Williams as Vice-President Exploration. Tim Fernback has resigned as CEO but will remain as Vice-President and Director of the Board of Directors.
Mr. Léveillé has over 28 years of experience in the International financial sector including 20 years in the mining exploration industry. Mr. Léveillé has started is career as a Stock Broker and Corporate Finance advisor with a National brokerage firm. From the mid 1990’s to today, he has been Executive and Director of exploration companies active in Africa. He has financed and managed exploration projects in Namibia since 1996. Mr. Léveillé is President of Q7 Capital inc., a private company providing financial and management advisory services to public and private companies.
Mr. Stuart-Williams is a geologist with 46 years of experience in the mining and exploration industry, principally in the southern African region. He holds a M.Sc degree in uranium and he has been involved in base metals, gold, coal, and industrial mineral projects. Mr. Stuart-Williams has a worldwide exposure (including Liberia, Philippines, Afghanistan, Canada, Uzbekistan, Australia, Uganda, Mauritania and all of the Southern African countries). He has been involved with the Haib project from the mid-1990s as exploration Manager and subsequently as a Technical Director (geology) for Deep South Mining who held the Mineral Rights over the Haib Project during the recent exploration by Teck Namibia.
Mr. Tim Fernback has resigned has CEO but will remain Vice-President and Director.
The Board of Directly is highly pleased with those nominations as they will bring a wealth of experience and knowledge and will add value to the current team in place. The Board also acknowledge the work of Mr. Fernback during the company’s conversion and is pleased with his commitment and that he stays involved with the company.
Deep-South also announces that it has hired Paradox Public Relations Inc. to provide investor relations services. Paradox will focus on the development and expansion of the company’s communications with the investment community through a comprehensive investor relations program. Under the terms of the agreement, Deep-South will pay Paradox $5,000 per month for a term of 24 months and may be cancelled by either party by giving 30 days notice. The company will grant Paradox incentive options to acquire 350,000 common shares in the share capital of the company at a price of $ 0.25 per share for a period of two years, vesting quarterly over 12 months.
About Deep-Sout Resources Inc.
Deep-South Resources Inc. is a Canadian company, actively involved in the acquisition, exploration and development of major mineral properties in Namibia and Canada. Deep-South growth strategy is to focus on the exploration and development of quality assets, in significant mineralized trends, close to infrastructure, in stable countries.
- Published in Deep South Resources Inc., Mining, News Home
These are the African countries investors should pay attention to
About half of all the African countries either host significant operating mines or have advanced exploration projects, yet investors tend to shy away due to perceived risks such as high levels of corruption and political uncertainty, a new report shows.
There are many rankings that aim to help companies choose the best countries to set up shop in the region, such as Canada’s Fraser Institute annual report and Transparency International’s corruption index, but London-based finnCap has come up with one of its own.
The investment bank analyzed the 25 (roughly) countries in Africa that have working mines or or advanced exploration projects, incorporating the best known rankings available, but factoring each country’s geological potential and their current security risk.
So, what did they conclude?
The first and main finding is that there is an urgent need to refill the mining project pipeline of all African countries with early stage exploration projects of all shapes and sizes.
But where to start? According to finnCap, investors would be better off in Ghana, Botswana, Namibia, Lesotho and Senegal, which already have companies successfully operating inside their borders. These include, just to name a few, Kennedy Ventures (Tantalite Valley tantalum mine) and Weatherley (Tschudi copper mine) in Namibia, as well as Firestone Diamonds (Liqhobong diamond mine) and Gem Diamonds (Lesteng diamond mine) in Lesotho.
At the bottom of the bank’s list figure Eritrea, Kenya, Zimbabwe, Guinea and Angola, which also have a few known names present in their mining sector. Those include Avocet (Tri-K gold project) in Guinea, ASA Resource Group (Freda Rebecca gold mine and Bindura nickel mine) and Caledonian (Blanket gold mine) in Zimbabwe, and Base Resources (Kwale mineral sands mine in Kenya.
“There is a lot of money to be made if country risk and entry timing can correctly be judged,” the reports says, citing as an example Randgold Resources’ success story in Mali, which started off with a small gold mine back in 1995 when the country had had no mining industry other than some artisanal operations.
Within five years, Randgold’s Morila gold mine (jointly owned and managed with AngloGold) had become one of the world’s more profitable mines and laid the foundations for the growth of the business.
So the lesson for investors should be to always look at the risk/reward balance, the analysts say. Does outstanding geology beat corruption and security issues, including but not limited to the threat of the radical Muslim insurgencies? This mostly comes down to the quality of company management and their in-country experience, they conclude.
Source (Mining.com)
- Published in Blog, Deep South Resources Inc., Mining
2017 PREVIEW – LORD COPPER: Electric vehicle sector could be the driving force for metals commodities
Electric vehicle sector could be the driving force for metals commodities
Metals – or commodities generally – are no longer the pariah class, as funds once again dip their toes into the pool, Lord Copper asserts as he looks to the year ahead with cautious optimism.
2016 finished on a quietly positive note. Through the second part of last year, we saw metal prices stage a rally (of sorts: not, I concede, what we became used to during the boom period that now lives only in the memories and bank accounts of those who were there at the time, but a rally nonetheless), which has served to give a boost to the confidence of commodity investors.
Cyclicality has had a part to play here: nothing goes in one direction for ever and things that were out of fashion come back into focus as part of the natural order of the world. But that’s not all. As I suggested would be the case at the beginning of the year, selected mining equities have indeed pointed the way, with that sector of the FTSE powering the index to its new record high. (Incidentally, I noted a couple of weeks ago that Danny Fortson, in the Sunday Times, rated Rio Tinto a definite sell on the back of its (well-publicised) problems. I’m not an analyst, so my views are strictly those of a slightly educated outsider, but I’d still put that company among the best of the bunch, given where it sits on the cost curve in the majority of its products. I certainly wouldn’t dream of giving advice, but neither would I sell Rio from my portfolio.)
So what are we really looking at? The major influence – both up and down – in recent times has been China; this time, though, I’m not sure that it is as central as we have come to expect. Certainly, we all correctly and keenly watch that economy for signs good or bad, but at the moment the signals seem a bit fuzzy. The property market remains a problem, but on the other hand the government is projecting stimulus which should aid the commodity markets. But there is still overcapacity, and where does it go? All the aluminium can’t end up in the Mexican desert; and what does the Trump ascendancy presage for trade relations between the world’s two largest economies? Looked at coldly, unfortunately I can’t see a clear signal of a consistent China once again driving the commodity freight train.
My optimism comes from a slightly different direction, and one where we have to be very cautious, as this is more commodity-selective than China’s overall appetite. As often in the past, technological development holds a key position for the market. One of the hottest topics in scientific research right now is the work being done on the storage of electricity – in other words, better, smaller and cheaper batteries. This is being driven principally – but not exclusively – by the increase in demand for electric vehicles. The beneficiaries of this demand will be lithium (obviously), cobalt and nickel – as the cathode and anode – and also copper, not directly for use in batteries, but because an electric vehicle uses something like four times the copper of a conventional one. And, of course, one should also bear in mind the increased copper usage that will come through the continuing development of charging networks.
One of many charging points for Tesla electric vehicles
For an idea of how that will roll out, look at the growth in the network of petrol stations in the first part of the 20th century. (As an aside – for those who are interested – have a look on catch-up TV for the 2016 Royal Institution Christmas Lectures, where Saiful Islam, a chemistry professor from the University of Bath, is talking precisely about this issue of power generation and storage; it’s interesting stuff.)
So, I’m not a scientist, but I can see the way the world is going, and it’s towards an environment where the renewable generation of electricity and its storage will become of increasing importance. Lithium is a clear beneficiary; right now, you would bet on nickel and cobalt, but beware – battery technology may change to use other metals…. And copper, still the most effective means of power transmission, looks very secure.
I don’t expect a boom again, but a selective investment in metals could be the right way to go in 2017.
- Published in Blog, Deep South Resources Inc., King's Bay
Jet Gold changes name to Deep-South Resources
Jet Gold Corp. has received the approval to change its name to Deep-South Resources Inc. and to consolidate its common shares by a ratio of one new share for two old shares. The company will start trading under its new symbol DSM and on a consolidated basis at the market opening on Tuesday, Nov. 16, 2016. Further to the consolidation, the company will have 37,083,316 common shares issued and outstanding.
We seek Safe Harbor.
- Published in Deep South Resources Inc., Mining, News Home
Jet Gold 2,105,000-share private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Sept. 28, 2016.
Number of shares: 2,105,000 shares
Purchase price: seven cents per share
Warrants: 1,052,500 share purchase warrants to purchase 1,052,500 shares
Warrant exercise price: 17 cents for a two-year period
Number of placees: seven placees
Finder’s fee: $1,344 payable to Mackie Research Capital
Note that in certain circumstances, the exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.
© 2017 Canjex Publishing Ltd. All rights reserved.
- Published in Deep South Resources Inc., Mining, News Home
Jet Gold closes $147,350 private placement
Jet Gold Corp. has closed a non-brokered private placement of 2,105,000 units at seven cents per unit for gross proceeds of $147,350. Each unit consists of one common share and one-half common share purchase warrant of Jet Gold. Each full warrant will entitle the holder thereof, during a period of 24 months from the date of closing of the private placement, to purchase one Jet Gold common share at an exercise price of 17 cents per common share. Each security issued pursuant to the placement will have a mandatory four months holding period from the closing date of the placement.
The company has paid Mackie Research Capital Corp. a finder’s fee of $1,344 and issued 19,200 compensation warrants. The compensation warrants have the same terms and conditions as the warrants. Each security issued pursuant to the placements has a mandatory four-month hold period from the date of closing of the placements.
We seek Safe Harbor.
© 2017 Canjex Publishing Ltd. All rights reserved.
- Published in Deep South Resources Inc., Mining, News Home