TSX-V-listed Deep-South Resources has closed an option agreement, initially entered into on March 28, with Zambian private company World Class Minerals Venture (WCMV) to acquire up to an 80% undivided interest in three large-scale exploration licences in the centre of the Zambian Copperbelt.

Pursuant to the option agreement, Deep-South has to make a cash payment of $150 000 to WCMV, in addition to issuing WCMV 1.75-million Deep-South common shares. It will also be required to spend $3-million on exploration at the three licences over a five-year period.

As of July 6, Deep-South has already paid $30 000 and issued 500 000 common shares to WCMV.

Before the end of the second anniversary of the option agreement, Deep-South will complete the collection and analysis of 100 soil samples over the identified anomalies on licence LEL 23246 and 350 soil samples over the identified targets on each of licences LEL 23247 and LEL 23248.

Deep-South will then decide whether to proceed with more intensive sampling or to evaluate any drilling targets. Upon completion of the payments due in the second year, Deep-South will have acquired an undivided interest of 51% in the licences.

Meanwhile, Deep-South has also acquired all of the exploration data for the licences held by geological consultant Nathan Sabao by entering into a mining exploration data agreement dated March 28.

Deep-South will issue an initial 500 000 common shares to the geological consultant in return for the data.

Moreover, on the first anniversary of the mining exploration data agreement, Sabao will transfer to Deep-South all of the exploration data for the licences in consideration of the issuance of a further 500 000 common shares.

In connection with entering into the option agreement and the mining exploration data agreement, Deep-South has issued 300 000 common shares as a finder’s fee to Gestion Karl Mansour, an arm’s length party to the company and WCMV.

Also, 50 000 common shares will be issued to Gestion Karl Mansour when the payments for year three of the option agreement are made.