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Firestone, Tango Agree Extended Deadline for Botswana Deal

Oct 15, 2015 12:40 AM   By Rapaport News
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RAPAPORT... Firestone Diamonds has agreed to altered conditions of an $8 million deal to sell its Botswana operations, including a new deadline by which acquirer Tango Mining must have raised the consideration and other amounts.

Tango now has until April 8, 2016, to raise the $7.65 million balance, after its failure to pay the $300,000 deposit into escrow by the original September 30 cut-off put a snag in the deal. By this new deadline, it must also raise the aggregate, ongoing, cumulative cost of care and maintenance of the mine it is acquiring from the date of the sale agreement until the date of completion.

Vancouver’s Tango must also obtain Botswanan ministerial approval by this date for the transfer of the controlling interest in Monak, a subsidiary through which Firestone currently owns the Botswanan facility. It is also required by that time to get the go-ahead from Canada’s TSX Venture Exchange, on which Tango is listed.

London-based Firestone, whose shares are quoted on the UK’s Alternative Investment Market, also said Tango had agreed to meet certain milestones by the April date, with the deal set to be terminated if these are not met or waived.

The Botswana Competition Authority gave the disposal unconditional approval on September 28.
Tags: Firestone Diamonds, Rapaport News, Tango Mining
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