Mineral exploration and development company Deep-South Resources has signed a definitive earn-in agreement with Word Class Minerals Venture (WCMV) to acquire up to 80% of three copper exploration licences in the Zambian Copper belt.
“While reinstating the licence over the Haib copper project, in Namibia, remains our number one priority, we are very enthusiastic about the option to acquire these strategically well situated licences in the heart of one of the most prolific copper belts in the world," says Deep-South chairperson John Akwenye.
The transaction includes the licences for the Luanshya West, Chililabombwe and Mpongwe projects.
Deep-South has paid WCMV an initial $15 000 on signature of the agreement and will pay an additional $15 000 on approval of the transaction by the TSX-V
It will also issue 500 000 of its common shares to WCMV upon approval by the TSX-V.
On the second anniversary of the agreement, Deep-South will pay WCMV a further $30 000 in cash and 250 000 shares.
Before the end of the second anniversary of the agreement, Deep-South will also 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.
It will then decide whether to proceed with more intensive sampling or to evaluate any drilling targets.
Upon completion of the above, Deep-South will have acquired an undivided interest in 51% of the licences.
In order to acquire a further 29% interest in the licences, Deep-South, at the end of the third, fourth and fifth years of the agreement, will pay WCMV $30 000 for each of the three years and spend at least $1-million in exploration programmes for each of the three years.