Tango Mining Agrees to Sell Oena Diamond Project for US$3 Million
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 23, 2016) - Tango Mining Ltd. ("Tango" or the "Company") (TSX VENTURE:TGV) announces that it has has received a binding offer from Bothma Diamonte CC ("Bothma"), an unrelated third party company registered in South Africa, to acquire African Star Minerals (Pty) Limited ("African Star") that owns 100% of the Oena Mine located in Northern Cape, South Africa (the "Oena Project"), of which Tango has a 51% interest in, for US$3,000,000 and is payable in tranches.
Bothma is well known in the Northern Cape and Free State and has worked as contractor on various projects for the mining of alluvial diamonds, the processing and manufacture of river sands and kimberlite projects. The Oena Project consists of an 8,800-hectare mining right and corresponding infrastructure and all associated processing equipment located along the Orange River in a well-established alluvial diamond-mining province known to produce high quality and large sized diamonds.
In connection with the agreement with Bothma for the purchase of African Star, Tango has entered into a Binding Term Sheet and Sale and Acquisition Agreement - Contracting ("Stage 1 Agreement") whereby Bothma will continue the alluvial diamond bulk-sampling program at the Oena Project, and following that will enter into, a Stage 2 Sale and Acquisition Agreement - Share Sale and Purchase ("Stage 2 Agreement") whereby Bothma will complete the acquisition of African Star. The Company's Kwena Group operational team, and in particular Mr. Theodor Boshoff, will continue as the Tango representative during the bulk-sampling program. Tango will receive a minimum of 15% of the proceeds of all diamond sales for a term of the longer of 12 months and/or until a Section 11 approval is obtained.
Tango's sale of African Star is subject to the approval of the TSX Venture Exchange and to the approval of the Minister of Mineral Resources pursuant to Section 11 of the Mineral and Petroleum Resources Development Act No. 28 of 2002, Republic of South Africa and completion of the Stage 2 Agreement.
In connection with the sale of African Star, Tango has agreed to pay to Merlin Partners LLP a finder's fee in the sum of USD$60,000, representing 2% of the purchase price, which fee shall be paid in pro rata installments within 30 days after Tango receives each tranche of the purchase price.
About Tango Mining Limited
Tango Mining Ltd. is a Canadian company that primarily operates in southern Africa. Tango has completed a positive preliminary economic assessment for the past producing BK11 Kimberlite Diamond Mine, Botswana that could produce in excess of 500K carats over the life of mine and has a short timeline to re start of production. Tango agreed to acquire from Firestone Diamonds Limited its 100% right in the BK11 Mine, which agreement has not yet closed. Tango's Kwena Group have four thermal coal, metallurgical and processing plant and engineering contracts that process 6.5 Mt 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's vision is to become a junior mining company with a focus on diamond mining and development projects.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has neither approved nor disapproved the contents of this press release.
Contact
Tango Mining Ltd.
Mr. Terry L. Tucker, P.Geo.
Executive Chairman and Interim CEO
terry.t@tangomining.com
www.tangomining.com