Tango holds Oena through a stake in African Star Minerals, which owns the project outright. George Zard will take a 31% stake for US$300,000.
Oena consists of 8,800 hectares of license on the lower Orange River.
The transaction closing will take place in two parts, initially with the transfer of 23% ownership of ASM to George Zard and second with transfer of an additional 8%.
Both transfers are subject to South African regulatory consents and approvals required to implement the transaction.
While the mining rights are being renewed with the relevant South African ministries, Tango must place in escrow, 7,925,160 Tango shares and upon receipt of the renewal of the CMR the Escrowed Shares will be cancelled and returned to the treasury.
In the event the CMR is not renewed, George Zard will receive the escrowed shares and will transfer back to Tango the 31% interest in African Star Minerals.
Tango, via its South African subsidiaries, already holds four thermal coal, metallurgical and processing plant and engineering contracts that process 6.5 Mt of coal per annum, with clientele that include Exxaro and Glencore. The company also holds an existing interest in the Oena project.
Story by ProactiveInvestors