VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 28, 2017) - Tango Mining Limited ("Tango" or the "Company") (TSX VENTURE:TGV) is pleased to announce that that it has entered into a non-arms length acquisition agreement to acquire an additional 23% interest in the issued and outstanding shares of African Star Minerals (Pty) Limited ("ASM") in which Tango currently owns a 51% interest (see news release dated 20 October 2014), which will increase Tango's total interest to 74%. Tango has agreed to pay US$200,000, payable in tranches, to acquire the 23% interest in ASM.
Tango is also pleased to announce that ASM`s mining work programme at the Oena Diamond Mine ("Oena" or the "Property"), by a contractor, African Mineral Recovery Solutions CC ("AMRS"), has commenced with the mobilization and commissioning of additional mining and processing equipment, including a Bourevestnik X-ray sorter (see news releases dated 18 November 2016 and 8 February 2017). During test commissioning, AMRS recovered a total of 62.17 carats with an average value of US$3,780 per carat, including a stone of 36.3 carats. Since Tango acquired ASM, it has produced 254.2 carats which have been sold at an average price of US$1,881 per carat.
About African Star Minerals (Pty) Limited ("ASM")
ASM owns 100% of the Property which consists of a 8,800 hectares ("ha") Converted Mining Right ("CMR") located on the lower Orange River, Northern Cape Province, South Africa. Oena covers a 4.8 kilometre ("km") wide strip along a 15-km length of the Orange River in a well-established alluvial diamond-mining province known to produce high quality and large sized diamonds.
Tango Acquisition of 23% of ASM
Tango has agreed to acquire the 23% interest in ASM from Kevin Gallagher, a Director of Tango, for US$200,000 to be paid and satisfied by Tango in tranches whereby US$50,000 (the "Initial Payment") will be paid on closing of the transfer of the 23% interest in ASM. The balance of US$150,000 ("Outstanding Payment") will be paid in installments from dividends earned by Tango from ASM. Gallagher has been granted the right to convert some or all the Outstanding Payment into Tango shares at the 5-day volume weighted average price of Tango shares immediately prior to the notice date ("Notice Date") subject to a minimum price of $0.05. In the event Tango has a 5-day volume weighted average price of C$0.07 cents or above, Tango has an option to force conversion of some or all the Outstanding Payment into equity at the 5-day volume weighted average.
The ASM transaction is subject to receipt of the approval of the TSX Venture Exchange and all South African regulatory consents and approvals required to implement the transaction.
Finance Update
The Company confirms that is has issued 7,585,580 shares in the capital stock of the Company at a price of $0.05 per share in full and complete settlement of indebtedness and the number of securities issued and outstanding now is 181,117,340 common shares.
About Tango Mining Limited
Tango via its South African subsidiaries hold four thermal coal, metallurgical and processing plant and engineering contracts that process 6.5 Mt of coal per annum, with clientele that include Exxaro and Glencore. The four projects are located within the Ogies and Highveld coalfields, Mpumalanga Province and Kliprivier coalfield, KwaZulu-Natal Province, South Africa. The Company also holds an interest in the Oena Diamond Mine, an alluvial diamond property, Northern Cape Province, South Africa. Tango has a continued development plan in place to grow the business using the successful past 19-year business model of the South African operations, an established market presence and its proven successful operational reputation in the coal, base and precious metal and precious stone mining sector in Southern Africa.
