Deep-South Resources (TSXV: DSM) this morning is feeling the effects of investing in high-risk regions of the world. The company has provided a further update to its recent struggles in Namibia related to its mining license, and the results are not positive.
The company has indicated that following a meeting with the Minister of Mines and Energy of Namibia, along with other officials from the ministry, the government has confirmed that its application for the renewal of its exclusive prospecting license for the Haib Copper project has been denied.
The renewal application has reportedly been denied as a result of the firms inability to advance the license to pre-feasibility and complete a proposed drill program. The firm itself however reports that this step was skipped as it looked to upgrade a preliminary economic assessment instead and begin a full feasibility study, which the Ministry reportedly was aware of – while also indicating that the drill program was, in fact, completed.
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Following the denied application, the company has ended all work being conducted on site, while employees have begun to be let go. The company has indicated that it will continue to “vigorously contest” the decision under the laws of Namibia.
Deep-South Resources last traded at $0.13 on the TSX Venture.
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.
