Deep-South Resources Inc. said March 8 that it entered into an off-take agreement with Euro Alloys Ltd. for 20% of the expected annual production from the Haib copper project in Namibia.
Euro Alloys holds an 8.04% stake in Deep-South, while Teck Resources Ltd. holds about 35% of the company.
Under the deal terms, Euro Alloys will have the right to buy up to 20,000 tonnes per annum of the expected copper cathodes production from Haib.
The purchase price will be established by the average grade A copper cash price published by the London Metal Exchange for the month prior to the acquisition. The price will be discounted at US$10 per tonne, as well as discounted of the transport cost to load port.
Euro Alloys has also been granted an option to acquire 1 million shares in Deep-South at 15 Canadian cents apiece during a 12-month period from the date of the agreement.
The company holds the right to appoint a director to Deep-South's board, with nomination subject to the TSX Venture Exchange approval.