Teck sells 70% interest in Namibia copper project

VANCOUVER (miningweekly.com) – Canadian diversified miner Teck Resources has agreed to sell its 70% interest in Haib Minerals to TSX-V-listed Deep-South Resources, who holds the remaining 30% interest in Haib.

Haib holds a 100% interest in the Haib copper project, in Namibia.

Teck will receive 13.6-million Deep-South shares at closing, which together with the 4.16-million shares currently held by Teck, will result in Teck holding about 35% of Deep-South's outstanding shares on an undiluted basis.

Should Teck’s 17.76-million common shares represent less than 35% of the issued and outstanding common shares immediately following closing, Deep-South will issue more shares to Teck to maintain Teck's immediate post-closing ownership at 35%.

Teck also holds a $373 195 convertible debenture and, should it convert the entire principal amount, it would hold about 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, the company said on Wednesday.