Mineral exploration and development company Deep-South Resources has concluded an agreement to acquire up to 80% of three copper exploration licences in the Zambian Copper belt from Word Class Minerals Venture (WCMV).
Following the execution of the option agreement, which was signed earlier this year, Deep-South has received sole and exclusive rights from WCMV to acquire an undivided interest of up to 80% in the licences over a five-year period.
The licences covered under the transaction include Luanshya West (LEL 23247), Chililabombwe (LEL 23247) and Mpongwe (LEL 23248).
These licences are located in the centre of the Zambian Copper belt, which is said to be one of the world’s most prolific copper belts.
According to the option agreement, Deep-South will have to make a $150,000 cash payment, issue 1.75 million of its common shares, and incur $3m in work expenditures.
Deep-South said it made a $30,000 payment and issued 500,000 of its common shares, as part of the agreement.
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Before the end of the second anniversary of the signing of the deal, Deep-South will also complete the analysis of 100 soil samples over the identified anomalies on licence LEL 23246, and 350 soil samples over on licences LEL 23247 and LEL 23248.
Subsequently, the firm will make a decision on whether to move forward with more intensive sampling or to assess any drilling targets.
At that point, Deep-South will have acquired 51% of undivided interest in the licences.
To acquire the remaining 29% stake in the licences, Deep-South will have to pay $30,000 every year at the end of the third, fourth and fifth year of the agreement to WCMV, for a total of $90,000.
Deep-South’s growth strategy is to focus on the exploration and development of quality assets in significant mineralised trends and near infrastructure in stable countries.
Deep-South chairman John Akwenye earlier said: “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.”