As announced on 9 July 2015, Firestone Diamonds, the AIM-listed diamond developer, entered into a conditional sale agreement (CSA) with Tango Mining for the disposal, for a total consideration of US$8 million.
As announced on 13 October 2015, certain terms of the CSA were amended by an amendment letter. Pursuant to a further amendment letter, all conditions of the CSA and amendment letter must now be satisfied by no later than 29 July 2016 (the revised drop dead date).
In accordance with the terms of the CSA, the revised drop dead can be extended, in certain circumstances, to 29 August 2016.
This extension is to enable Tango Mining to finalise the proposed $30 million loan commitment with Vanderbilt Commercial Lending, Inc. to finance the acquisition of Firestone Diamonds’ Botswana operations and to recommence operations at the BK11 mine.
All other terms of the CSA and amendment letter remain the same and accordingly, if the conditions of the CSA and amendment letter are not satisfied or waived by the revised drop dead date, the disposal will not complete.