TSX-V-listed Deep-South Resources has announced a private placement of 30-million units at a price of C$0.065 apiece, for gross proceeds of up to C$2-million.
Each unit will be comprised of one common Deep-South share and one-half of one common share purchase warrant. In turn, each warrant entitles the holder thereof to acquire one common share at a price of C$0.10 apiece for 24 months from the date of issue.
Deep-South will use the proceeds to advance the Haib copper project, in Namibia, as well as exploration on its three exploration licences in Zambia.
The offering will close in two tranches, with closing of the initial tranche expected to occur on or about August 30 and the final tranche in mid-September.
Deep-South recently reappointed South African technical consultancy MSA Group to conduct an updated mineral resource estimate (MRE) on the Haib project, after MSA was previously interrupted with the work when the Namibian mining authority refused to approve a licence renewal of the project in 2021.
A new MRE and subsequent technical report will follow completion of a drilling programme that was also stopped in 2021. There was still 5 200 m of drilling to be completed as of mid-August.