Namibia

Deep South takes Namibia’s mining minister to court over license denial

The app, which also targets the mining commissioner and Orange River Exploration and Mining, is seeking an urgent ban to prevent the government from awarding exploration or mining rights in the same license area to another company.

Deep-South is also seeking to prevent the government from awarding exploration or mining rights in the same license area to another company.

Orange River is named in the lawsuit as a potential interested party in this matter as it applied for an exclusive exploration license spanning the Haib copper deposit on November 12 last year.

From April 2017 to April 2021, Deep-South invested more than C$2 million ($1.6 million) in the project, including an updated preliminary economic assessment. The miner also proposed a feasibility study of C$7.1 million and a pilot plant of C$25.5 million.

Since receiving news of the license denial, Deep-South has halted all work on the project and laid off its staff at the site.

The company acquired the remainder of the project in 2017 from Teck Resources, one of its major shareholders.

The updated December PEA put Haib’s NPV7.5 after-tax at US$957 million and IRR at 29.7% using the $3/lb copper price, envisioning a 24-year mine producing 35,332 tons per year of copper cathodes and 51,080 tons per year of copper sulfate.

Deep-South said it is also investigating its international legal options and will reveal its strategy in due course.

The company’s shares are down nearly 63% in the past month and last traded at 4.5 cents, valued at C$6.6 million ($5.4 million).

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