Deep-South Resources Inc (TSX-V:DSM, FRA:DSD) has updated on the status of its Haib Copper project, saying the High Court of Namibia had now passed a ruling that forbids the country's Ministry of Mines and Energy to grant a mineral licence, including an exclusive and prospecting licence (EPL), to anyone else.
As reported in June this year, the firm's renewal of licence EPL 3140 covering the Haib asset was denied by the Ministry - a decision the company said it will contest.
Now, in a statement on September 1, the company said the High Court had now made 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.
READ: Deep-South files applications with High Court of Namibia; focuses on additional copper properties
"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," Deep South noted.
The Court will hold another hearing on September 16 this year to outline the next steps to review of the decision of the Minister, it added.
The renewal refusal in June cited the company's "inability to advance the EPL to Pre-Feasibility and complete the proposed drilling program as planned".
But Deep South said today (Sept 1): "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."
It added that due to the refusal, it had terminated all work on-site and has proceeded with the retrenchment of its employees on site.
Deep-South Resources is a mineral explorer and developer focused on quality assets in significant mineralized trends and in proximity to infrastructure in stable countries.
Contact the author at giles@proactiveinvestors.com