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Deep-South retrenches some employees as its Haib licence renewal application is refused again

28th June 2021

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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After pleading with the government of Namibia, through Namibia Mines and Energy Minister Tom Alweendo, to get its exploration and prospecting licence (EPL) renewed, TSX-V-listed explorer and developer Deep-South Resources reports that the Ministry has again refused to renew it.

Deep-South’s management met with Alweendo on June 25 and received communication from the Ministry of Mines and Energy confirming that its application for the renewal of its exclusive prospecting licence 3140 has been refused.

The Ministry of Mines and Energy has denied its EPL renewal citing Deep-South’s inability to advance the EPL to prefeasibility study (PFS) stage and to complete the proposed drilling programme as planned.

However, in a statement, Deep-South points out that it kept the Ministry of Mines and Energy well apprised, with no objection on its part, of a proposed change from the PFS to an upgraded preliminary economic assessment, as well as the start of a full feasibility study.

Further, Deep-South says the Ministry of Mines and Energy issued all permits required for the drilling programme and is “well aware” that the company has completed the drilling programme.

RESUSAL TO BE CONTESTED

Deep-South says it intends to “vigorously contest” the Ministry’s decision “by all means necessary and available” under the Minerals (Prospecting and Mining) Act and other applicable laws of Namibia.

In its application for renewal and subsequent representations made to the Ministry of Mines and Energy, Deep-South maintains that it “clearly demonstrated” having met all criteria under the Act to justify the renewal of its licence.

Nonetheless, as a result of Alweendo’s refusal to renew the EPL, Deep-South has terminated all work on site and has proceeded with the retrenchment of its site-based employees.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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