Firestone-Tango Botswana Deal Deadline Extended
October 15, 15
(IDEX Online News) – London-based Firestone Diamonds plc has agreed to amend “certain conditions of the conditional sale agreement (CSA)” with regard to its Botswana operations that it entered into with Tango Mining Ltd.
After its failure to pay $300,000 into escrow as a deposit by September 30, Tango now has until April 8, 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 must also obtain Botswanan ministerial approval for the controlling interest in Monak, a subsidiary through which Firestone currently owns the Botswana facility. Vancouver-based 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 or waived by the Drop Dead Date (April 8, 2016) the disposal will not complete.
The Botswana Competition Authority gave the disposal unconditional approval on September 28.