Teck Resources Ltd. announced it has entered into a definitive agreement to sell its 70% interest in Haib Minerals Ltd. to Deep-South Resources Inc., who holds the remaining 30% interest in Haib. Haib holds a 100% interest in the Haib copper project located in Namibia.
As part of the consideration under the sales agreement, Teck will receive 13.6 million common shares of Deep-South at closing. The shares issued on closing, together with the 4.17 million common shares currently held by Teck, will result in Teck holding approximately 35% of Deep-South’s outstanding shares on an undiluted basis.
In the event that Teck’s common shares represents less than 35% of the issued and outstanding common shares immediately following closing, Deep-South will issue additional shares to Teck in order for the company to maintain post-closing ownership at 35%. In addition, Teck holds a $373,195 convertible debenture, that if Teck were to convert the entire principal amount, Teck would hold approximately 38% of Deep-South’s outstanding common shares immediately following closing of the transaction, calculated on a partially diluted basis assuming the conversion of the debenture only.
Teck, headquartered in Vancouver, Canada, is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada,