Deep South Resources Inc (CVE:DSM) (OTCMKTS:JAUGF) (FRA:DSD) revealed on Friday that it has upsized its previously announced non-brokered private placement to C$4.5 million from $C2 million due to “significant demand.”
The mineral exploration company is raising the money to further advance its flagship Haib copper project in Namibia and for general working capital purposes.
The porphyry deposit sits within a 37,000-hectare property and is one of the largest of its type in Africa, already housing a higher-confidence indicated resource of 3.1 billion pounds of the red metal.
READ: Deep South Resources releases updated PEA on its Haib project in Namibia buoyed by rising copper prices
Under the revised private placement, Deep-South Resources will sell 30,000,000 units of the company at a price of C$0.15 per unit. Each unit will be comprised of one share and one half of one share purchase warrant.
Each full warrant will entitle the holder to acquire one share at a price of C$0.22 for a period of 24 months from the closing date of the offering.
The company said Red Cloud Securities Inc is acting as a finder in connection with the offering. Other finders may be added before closing.
The shares — and any shares issuable upon the exercise of the warrants —and applicable finder’s warrants will be subject to a hold period of four months and one day from the closing date of the offering.
Deep-South Resources Inc is largely held by Namibian shareholders, while management holds 19% and Teck Resources Ltd (NYSE:TECK) has 21% of the share capital.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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