TSX-V-listed Deep-South Resources’ application for the renewal of its exclusive prospecting licence 3140, in Namibia, has been denied.
The miner received a notice from the Ministry of Mines and Energy of Namibia on June 16, citing the reason for the decision as the company’s inability to advance the licence to prefeasibility study (PFS) stage and complete a proposed drilling programme as planned.
Deep-South has, however, requested an urgent meeting with the Minister to review and reverse the decision as it is convinced it is a misunderstanding.
The Minister has accepted a meeting to discuss the matter and the meeting should take place early next week, the company notes.
Deep-South maintains that the Ministry was kept well apprised, with “no objection on their part” to the proposed change from the PFS to upgraded preliminary economic assessment and the start of a full feasibility study.
Moreover, the Ministry issued all permits required for the drilling programme and was well aware that Deep-South has completed the drilling programme, the miner said.
Deep-South CEO and president Pierre Léveillé says the company “is well funded and is moving ahead with a large development programme”. He laments the “surprising decision” by the Ministry, adding that it is “not in the best interest of the development of the mineral resources of Namibia”.
Léveillé is confident that a meeting with the Minister will remove any possible misunderstanding and that the situation will be rectified in the shortest time frame possible.
In its application for renewal and subsequent representations made to the Ministry, Deep-South has demonstrated that it adequately meets the criteria under the Minerals (Prospecting and Mining) Act to justify the renewal of its licence, the company assures its shareholders.
Accordingly, the company is of the opinion that the refusal is “unreasonable” although it has, as a result, immediately suspended all work on site, nonetheless retaining hope that the retrenchment of its employees will be avoided.