The company is looking to dispose of its Botswana operations to Tango Mining – which owns an undeveloped diamond project in South Africa as well as a number of producing coal operations in the country as well.
As announced on 9 July 2015, the company entered into a conditional sale agreement (CSA) with Tango Mining for the disposal of its Botswana operations for a total consideration of US$8 million.
The extension is the third time Firestone Diamonds is granting an extension to Tango Mining. On 6 April this year the company announced it would allow Tango until 29 July to meet all the conditions for the sale.
Pursuant to a further amendment of the CSA, all conditions of the CSA must now be satisfied by no later than 9 September 2016.
This extension is to enable Tango Mining to finalise the proposed $30 million loan commitment with Vanderbilt Commercial Lending, to finance the acquisition of Firestone Diamonds’ Botswana operations and to recommence operations at the BK11 mine, as announced by Tango Mining on 24 March 2016.
However, all other material terms of the amended CSA remain the same and accordingly, if the conditions of the CSA are not satisfied or waived by the revised date, the disposal will not complete.