Deep-South Resources has signed a licence agreement with Alexander Mining to acquire a licence for the potential use of Alexander’s proprietary leaching technologies at the Kapili Tepe (KT) polymetallic copper project in the Sivas Province in the northeast/central part of Turkey. The Agreement is conditional on Deep-South completing the acquisition of a 75% equity interest in the Kapili Tepe Project.
Earlier in June, Deep-South Resources signed an agreement to acquire from Baltic Investment Group, 75% of the KT project. Furthermore, Deep-South will acquire all the exploration and metallurgical data from Afrasia Mining & Energy Investment Holdings Ltd.
The KT project is a copper mineralised altered and brecciated shear zone also containing nickel, cobalt and gold mineralisation. It comprises one Mining Licence and two Exploration Licences, which are contiguous. The licensed area covers approximately 5,240 ha. The Kapili Tepe project is situated within the Tethyan Orogenic Belt of Turkey.
Deep-South proposes to delineate a NI 43-101 Compliant Mineral Resource Estimate and then decide on whether to conduct a PEA, which would be followed by a PFS for the estimation of a potential construction of a mine. Both the PEA and PFS work will include investigating a mineral processing plant at KT using Alexander’s leaching technologies.
Alexander has granted Deep-South a licence for the potential use of its technologies on amenable mineralised materials sourced from KT and also associated mineral processing technical consultancy services on the following key terms:
I. Alexander will receive a royalty of 2.5%. of gross saleable metal products produced from a potential mining operation at KT, if using Alexander’s leaching technologies
II. Upon completion of Deep-South’s acquisition of the 75% in the Kapili Tepe project and approval from the TSX Venture Exchange, Deep-South shall issue 500,000 common shares to Alexander
III. For an initial period of 24 months from the start of Deep-South formally committing to a PEA of the Kapili Tepe Project, to be renewed on a mutually acceptable rolling three months’ basis thereafter, a monthly technical consultancy services retainer fee of $7,500, paid in advance.
Martin Rosser, Chief Executive Officer, Alexander Mining, said: “Alexander’s interest in the Kapili Tepe project goes back several years and we are delighted that a potential strong new owner is now interested in progressing the project. We look forward to working closely together with Deep-South on this project, which has significant potential for the use of our leaching technologies.”
Turkey is considered as one of the most prospective and mining friendly countries. Recent amendments to the mining legislation and Investment incentive scheme provide value added taxes exemptions, custom duty exemptions, reduced royalty for strategic metals employee income tax relief and 80% tax reduction rate for certain projects depending on thier geographical position within the country. Large companies such as Eldorado Gold, Teck Resources, Inmet Mining, and First Quantum Minerals are operating in Turkey currently.
