Deep-South shares collapsed due to refusal to renew Haib copper licence
(Kitco News) - Shares of Deep-South Resources (TSX-V: DSM) crashed more than 60% today on the news that the Minister of Mines and Energy of Namibia confirmed that the company's application for the renewal of its Haib copper licence has been refused.
On June 16th, the company announced that it had received a notice from the Ministry of Mines and Energy of Namibia that its renewal application for its exclusive prospecting licence was denied citing the company's inability to advance the EPL to Pre-Feasibility and complete the proposed drilling program as planned, and had requested a meeting with the Minister to have its case reviewed.
On June 23, Deep-South announced that the representatives of the company have met with the Minister and other officials of the Ministry to voice the company's objections to the Minister's refusal to renew its Haib copper licence.
During the meeting, the company said that its representatives had the opportunity to inform the Minister of the work in progress on the project and discuss the reasons provided by the Minister for the refusal to renew the exploration and prospecting licence ("EPL") covering the Haib copper project.
As a result of the meeting, the Minister informed the company that he will review all the information provided and reconsider his decision, which will be communicated to the company in due course.
Today, the company announced that it has received a notice from the Minister confirming that the company's application for the renewal of its EPL 3140 has been refused.
The company said it intends to vigorously contest this decision by all means necessary and available under the Minerals (Prospecting and Mining) Act (the "Act") and other applicable laws of Namibia, and that it clearly demonstrated that the company has met all criteria under the Act to justify the renewal of its licence.
The Haib copper project hosts a porphyry copper deposit containing a NI 43-101 compliant indicated resource estimate of 457 MT @ 0.31% Cu for 3.12 billion lbs copper and an inferred resource estimate of 342 MT @ 0.29% Cu for 2.19 billion lbs copper. Deep-South disclosed a robust Preliminary Economic Assessment on December 15, 2020.