VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 18, 2017) - Tango Mining Limited ("Tango" or the "Company") (TSX VENTURE:TGV) announces that further to its news release dated March 23, 2017 the Company has now closed its agreement with Mr. Georges Zard ("GZ"), the owner of the international conglomerate The GZA Group, whereby GZ acquired from the Company an 8% interest in African Star Minerals (Pty) Ltd ("ASM"). ASM owns 100% of the Oena Diamond Mine which consists of 8,800 hectares Converted Mining Right ("CMR") located on the lower Orange River, Northern Cape Province, South Africa.
An application for a nine-year renewal of the CMR 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.
Tango has received from GZ US$35,000 for the 8% interest in ASM. The Company has issued and placed in escrow a total of 3,245,160 common shares of the Company as security for GZ's interest in ASM, to be held while the CRM is being renewed (the "Escrowed Shares"). Upon receipt of the renewal of the CMR the Escrowed Shares will be cancelled and returned to treasury. In the event the CMR is not renewed, the Escrowed Shares will be released to GZ and GZ 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. Additionally, in the event that Tango does not receive the necessary consents and approvals as required under South African regulations and the transfer of the 8% of ASM cannot be effected, Tango will release 930,755 of the Escrowed Shares to GZ.
The Company also confirms that it has issued 375,400 shares in the capital stock of the Company at a price of $0.05 per share in full and complete settlement of indebtedness.
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.
