Tango Mining Limited has recently announced that it has entered an agreement to acquire an additional 23% interest in the shares of African Star Minerals (Pty) Limited (ASM).
With the acquisition, Tango will increase its total interest to almost 75% of ASM. An excerpt from a Marketwired report states:
“Tango currently owns a 51% interest, which will increase Tango’s total interest to 74%. Tango has agreed to pay US$200,000, payable in tranches, to acquire the 23% interest in ASM.”
Under the agreement, Tango Mining will acquire the ASM shares from its director Kevin Gallagher for $200,000. The initial payment of $50,000 will be paid on closing of the transfer of the shares, while the balance of $150,000 will be paid through installments from the dividends to be earned by Tango Mining from ASM.
In the event when the acquiring company has a 5-day volume weighted average price of $0.07 or above, it will have the option to force conversion of some or all of the balance into equity at the corresponding volume weighted average.
On a related note, Tango Mining also announced that the ASM’s program at the Oena Diamond Mine by African Mineral Recovery Solutions CC has already started. During test commissioning, a total of 62.17 carats with an average value of $3,780 per carat was recovered.
This means that the acquisition will give Tango Mining 254.2 carats of produced diamond to be sold at an average price of $1,881 per carat.