VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 1, 2017) - Tango Mining Limited ("Tango" or the "Company") (TSX VENTURE:TGV) is pleased to announce that it has entered into a binding agreement with Georges Zard ("GZ"), the owner of the international conglomerate The GZA Group, whereby GZ will acquire a 31% interest in African Star Minerals (Pty) Ltd ("ASM") which holds 100% of the Oena Diamond Mine in South Africa for US$300,000.
"We are excited to expand our investments into the diamond mining sector and look forward to growing diamond production at the Oena Diamond Mine and in other ventures with Tango as our technical partner," said Georges Zard.
GZ Acquisition of 31% of ASM
ASM owns 100% of the Oena Diamond Mine ("Oena" or the "Property") which consists of 8,800 hectares ("ha") Converted Mining Right ("CMR") located on the lower Orange River, Northern Cape Province, South Africa. GZ has agreed to pay Tango US$300,000 for the 31% interest in ASM. An application for a nine-year renewal of the mining right was lodged with the Department of Mineral Resources with a Mining Work Programme, Environmental Management Plan and recently a revised Social and Labour Plan has been submitted in support of the renewal. The application for renewal of the CMR is pending. The transaction closing will take place in two parts, initially with the transfer of 23% ownership of ASM to GZ and second with transfer of an additional 8%. Both transfers are subject to South African regulatory consents and approvals required to implement the transaction. While the CMR is being renewed, Tango must place in escrow, 7,925,160 Tango shares ("Escrowed Shares") in the name of GZ and upon receipt of the renewal of the CMR the Escrowed Shares will be cancelled and returned to the treasury. In the event the CMR is not renewed, GZ will receive the Escrowed Shares and will transfer back to Tango the 31% interest in ASM. ASM has also submitted applications for other applicable approvals as required under South African regulatory consents and approvals and should the transfer of 8% of ASM not occur, Tango will release 2,113,376 of the Escrowed Shares to GZ.
The 31% ASM disposition is subject to completion of the 23% acquistion (see news release dated 28 February 2017) and receipt of the approval of the TSX Venture Exchange. In connection with the sale of the 31% interest in ASM, Tango has agreed to pay to Merlin Partners LLP, a 5% finder's fee and 396,000 share purchase warrants exercisable at a price of $0.05 for a period of 2 years.
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 Project, 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.
