VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 27, 2017) - Tango Mining Limited ("Tango" or the "Company") (TSX VENTURE:TGV) announces that further to its news releases dated February 28, 2017 and March 1, 2017 the Company has eliminated the intermediary step of acquiring from Mr. Kevin Gallagher a related party, a 23% interest in African Star Minerals (Pty) Ltd ("ASM"). As a result, the terms of the agreement with Mr. Georges Zard ("GZ") the owner of the international conglomerate The GZA Group, have been amended whereby Mr. Zard will now acquire from the Company an 8% interest in ASM in lieu of the 31% interest previously announced. Mr. Gallagher and Mr. Zard have entered into a private transaction whereby Mr. Zard will acquire the 23% interest directly from Mr. Gallagher.
GZ Acquisition of 8% of ASM
ASM owns 100% of the Oena Diamond Mine ("Oena") which consists of 8,800 hectares Converted Mining Right ("CMR") located on the lower Orange River, Northern Cape Province, South Africa. Mr. Zard has agreed to pay Tango US$35,000 for the 8% interest in ASM and purchase CAD$225,000 in securities from the Company by way of private placement.
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 transfer of the 8% interest to GZ is subject to South African regulatory consents and approvals required to implement the transaction.
While the CMR is being renewed, Tango must place in escrow, 3,425,160 Tango shares ("Escrowed Shares") in the name of Mr. Zard as security for its interest in ASM. 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, the Escrowed Shares will be released to Mr. Zard and Mr. Zard will transfer back to Tango a 31% interest in ASM, being the 8% acquired from Tango and the 23% interest acquired privately from Mr. Gallagher.
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 930,755 of the Escrowed Shares to Mr. Zard.
The 8% ASM disposition has received conditional approval by the TSX Venture Exchange. In connection with the sale of the 8% interest in ASM, Tango has agreed to pay to Merlin Partners LLP, a 5% finder's fee and issue 46,228 share purchase warrants exercisable at a price of $0.05 for a period of 2 years.
Finance Update
The Company confirms that is has issued 4,938,729 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 186,055,619 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 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.
