- Deep South Resources (TSXV:DSM) is boosting its Haib Copper Project
- The company will close its first tranche this week for $300,000
- The financing is expected to close mid-September
- Haib project 2021 drilling program results have shown the highest grade copper recorded on that deposit, at 2.57%, higher than the average of .31%.
Deep-South Resources Inc. (TSXV: DSM) is getting a boost to its Haib Copper Project in Namibia.
In August. the company announced a $2 million non-brokered private placement to be closed in two tranches.
The first tranche for $300,000 is expected to close this week, with the balance closing in mid- to the end of September. In our interview, CEO Pierre Leveille says the company is nearly fully subscribed.
“We’re at $1.8 million (a little bit over) and three institutions are taking $1.5 million and that’s why (we are) closing a little bit later,” Leveille says.
The net proceeds from the offering will be used for the advancement of the Haib Copper project in Namibia, and a small portion (less than 10 per cent) towards its exploration properties in Zambia.
The Haib project has completed the drilling program it started in 2021 and the results have shown the highest grade ever recorded on that deposit at 2.57 per cent, higher than the average of .31 per cent.
The proceeds for the Haib project will be used to delineate some of the drilling targets and to to start metallurgical test work in Australia on bio bleaching. Leveille says, “We will start an environmental impact study with the goal of eventually also starting a feasibility study to apply for a mining license on the project.”
As far as Deep-South’s license’s in Zambia, less than 10 per cent of the raise will go to its greenfield projects, which have 10 very large copper anomalies and 13 large cobalt anomalies.
After the closing of the raise, Leveille expects drilling should resume in Namibia within a month and a half, or possibly sooner.
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