Deep-South Resources Inc. (“Deep-South” or “the Company”) (TSXV: DSM) announces that the High Court of Namibia has rendered a decision that interdicts and restrains the Ministry of Mines and Energy of Namibia to grant a mineral licence, including an Exclusive and Prospecting Licence (EPL), in terms of the Minerals Act 1992, to any Person or Company over the area covered by the Haib Copper project – EPL 3140. The interdict and restrain order are in force until the final determination of the application to the High Court to review the decision of the Minister to not renew EPL 3140.
The Court will hold another hearing on September 16, 2021, to define the steps forward with regards to the review of the decision of the Minister.
The Company will provide regular updates in this regard and any other matter concerning this situation.
As disclosed in our press release dated June 16, 2021, the Company had received notice from the Ministry informing the Company that its application for the renewal of its EPL had been denied citing the Company’s inability to advance the EPL to Pre-Feasibility and complete the proposed drilling program as planned. The Company maintains that the Ministry was kept well apprised, with no objection on their part, of a proposed change from the Pre-Feasibility study to an upgraded Preliminary Economic Assessment (PEA) and commencement of a full feasibility study. The latter was already started. Moreover, the Ministry issued all permits required for the drilling program and are well aware that Deep-South has completed the drilling program.
As a result of the Minister’s refusal to renew the Licence, the Company has terminated all work on site and has proceeded with the retrenchment of its employees on site.
The Company is vigorously contesting this decision by all means necessary and available under the Minerals (Prospecting and Mining) Act (the “Act”) and other applicable laws of Namibia. In its application for renewal and subsequent representations made to the Ministry, the Company maintains that it clearly demonstrated having met all criteria under the Act to justify the renewal of its Licence.
