Deep-South Resources Inc. (TSXV: DSM) announced late Wednesday that it has received notice from Namibia’s Ministry of Mines and Energy denying the company’s license renewal application to operate at the Haib Copper deposit. The mining firm was seeking to renew its Exclusive Prospecting Licence 3140.
The company shared that the notice cited Deep-South’s “inability to advance the license to pre-feasibility and complete the proposed drilling program as planned.”
In its response to these cited reasons, Deep-South maintains that the ministry was aware and did not object to the company’s plan to upgrade the pre-feasibility study to a preliminary economic assessment and a full feasibility study. The company also shared that the ministry has previously issued all permits and is well aware of Deep-South’s completion of the alleged incomplete drilling program.
“In the context that the company is well funded and moving ahead with a large development program, the decision of the Minister is surprising and certainly not in the best interest of the development of the mineral resources of Namibia,” said Deep-South President & CEO Pierre Léveillé in a statement.
Deep-South has maintained that the government agency’s decision is a result of a misunderstanding and has requested an urgent meeting with the minister. The request has been accepted and the meeting is expected to happen next week.
The mining company argues that it adequately met the criteria under the Minerals (Prospecting and Mining) Act of Namibia in its license renewal application. It also showed to the minister the company’s economic impact on the country, including investing $2.0 million in the Haib Copper site development, a planned $7.1 million feasibility study program, and a planned $25.5 million pilot mining plant on the site.
Due to the denial of license, Deep-South suspended work on site.
Deep-South Resources Inc. last traded at $0.2225 on the TSX Venture but trading has been halted since June 11, 2021.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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