Business
Tango Mining Announces Strategic Focus on Diamond Operations and Proposed Disposition of Coal Operations and Concurrent Change of Name
VANCOUVER, British Columbia, July 30, 2019 (GLOBE NEWSWIRE) -- Tango Mining Limited (“Tango” or the “Company”) (TSX.V – TGV) announces that with the continued o
About this update from Southstone Minerals Limited
[{"type":"text","content":" VANCOUVER, British Columbia, July 30, 2019 (GLOBE NEWSWIRE) -- Tango Mining Limited (“Tango” or the “Company”) (TSX.V – TGV) announces that with the continued operational success at the Oena Diamond Mine in South Africa it is proposing to dispose of the Metallurgical and Mining Projects located in South Africa (the “Disposition”). The Board of Directors made this decision to allow management the ability focus attention on its diamond properties. The Company owns a 74% interest in each of Kwena Mining Projects (Pty) Ltd. (“KMP”), Kwena Mining and Metallurgical Services (Pty) Ltd. (“KMMS”) and Kwena Springlake Projects (Pty) Ltd. (“Springlake”) (collectively, the “Kwena Group”). Kevin Gallagher, a director of the Company and non-arm’s length party, is the purchaser of the Company’s interest in the Kwena Group. Therefore, the Disposition constitutes a \"related party transaction\" as such term is defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61-101). The Company is relying on the exemption from the formal valuation requirement set out in subsection 5.5(b) of MI 61-101 as the Company is a TSX Venture Exchange listed issuer. Subject to Section 5.6 of MI 61-101, the Disposition is subject to minority shareholder approval. The Company has scheduled a special shareholders meeting for September 13, 2019, with a record date of August 12, 2019 in order to seek minority shareholder approval. The Disposition is also subject to approval of the TSX Venture Exchange. The Disposition was approved by the disinterested directors of the Company who concluded that the terms of the Disposition were on market terms and were fair to minority security holders. As consideration for the acquisition of the Company’s 74% interest in the Kwena Group, Kevin Gallagher has agreed to return for cancellation an aggregate of 39,988,160 common shares of Tango (the \"Payment Shares\") at a deemed price of C$0.05 per share, collectively held by the Kevin Gallagher and his related parties for aggregate consideration of C$1,999,508. In addition, outstanding indebtedness owed to the Kwena Group from Tango and its subsidiaries in the aggregate sum of C$723,021 will be forgiven. After consummation of the transaction, the Company’s total assets will be reduced from $4,376,725 (as o...