Tango Mining to Buy Firestone Diamonds' Botswana Assets

Firestone Diamonds plc (LSE:FDI) announced that it’s entered into a conditional agreement to sell its Botswana operations to Tango Mining Ltd. (TSXV:TGV) for US$8 million in cash.
The sale will include Firestone’s BK11 mine.
As quoted in the press release:

Pursuant to the Agreement, Tango Mining will acquire Firestone’s wholly owned subsidiary Firestone Diamonds Botswana (PTY) Ltd (“Firestone Botswana”) and its 90 per cent. interest in Monak Ventures (PTY) Ltd (“Monak”) (together the “Botswana Companies”), which hold Firestone’s interests in Botswana, for a total consideration of US$8.0 million in cash, with US$0.35 million to be paid immediately, US$0.30 million which is to be placed in escrow as a deposit by no later than 30 September 2015 (the “Deposit”) and the remainder to be received on completion.

Completion is subject to, inter alia, satisfaction of the following conditions within six months of the date of the Agreement (the “Drop Dead Date”):

• Tango Mining raising the balance of the consideration, being US$7.35 million;
• the parties gaining approval from the Botswana Competition Authority;
• the parties obtaining Botswanan ministerial approval for the transfer of the controlling interest in Monak; and
• Tango Mining receiving the requisite approvals by the TSX Venture Exchange in respect of the Disposal.

Pursuant to the terms of the Agreement, Tango Mining has also agreed to pay into escrow the ongoing cost of BK11’s care and maintenance programme from the date of the Agreement up to the earlier of the date of completion of the Disposal and the Drop Dead Date, up to a maximum of US$40,000 per month.  

If the conditions of the Agreement are not satisfied or waived by the Drop Dead Date and an extension is not agreed between the Company and Tango Mining, the Disposal will not complete. In the event that the Disposal does not complete and the Company has fulfilled its obligations under the Agreement and the relevant regulatory consents and approvals have been obtained, the monies held in escrow, being the Deposit and the care and maintenance costs, will be released to Firestone.

Click here to read the full Firestone Diamonds plc (LSE:FDI) press release.