Firestone Diamonds plc has amended some conditions of the conditional sale agreement, with regard to its Botswana operations that it entered into with Tango Mining Ltd. The mining company has altered conditions of an $8 million deal to sell its Botswana operations, including a new deadline by which Tango Mining must have raised the consideration and other amounts.
After its failure to pay a deposit of $300,000 by September 30th, Tango now has until April 8th, 2016 to raise the $7.65 million balance (of the $8 million deal). Other stipulations include Tango Mining raising the aggregate ongoing cumulative cost of BK11’s (the mine up for sale) care and maintenance program.
Tango Mining must also obtain Botswana ministerial approval for the controlling interest in Monak, a subsidiary through which Firestone currently owns the Botswana facility. Tango is also expected to gain approval from the Canadian TSX Venture Exchange, on which the company is listed. A Firestone Diamonds announcement stated that if the conditions of the CSA were not satisfied by April 8th, 2016 the disposal will not complete.
Meanwhile Terry Tucker, the Tango Mining boss expressed confidence that the firm will raise the US$8mln it needs to complete the purchase of Firestone Diamonds.