(MENAFN- ProactiveInvestors - N.America) Tango Mining (CVE:TGV) shares jumped by 50% on Wednesday after the company said it had received a binding offer from Bothma Diamonte to acquire African Star Minerals Pty.
African Star fully owns the Oena mine located in Northern Cape South Africa of which Diamond miner Tango has a 51% interest in for $3mln and is payable in tranches.
Registered in South Africa Bothma is known in the Northern Cape and Free State and has worked as contractor on various projects for the mining of alluvial diamonds and the processing and manufacturing of river sands and kimberlite projects.
The Oena project consists of an 8800-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 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 whereby Bothma will complete the acquisition of African Star.
The company's Kwena Group operational team and in particular 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 $60000 representing 2% of the purchase price paid in pro rata instalments within 30 days after Tango receives each tranche of the purchase price.
Tango Mining shares were up 50% at C$0.02.
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