Firestone Diamonds Delays Sale Of Botswana Assets

Firestone Diamonds plc, the AIM-quoted diamond development company has agreed to extend the date by when all conditions for sale of its Botswana assets to Tango Mining Limited must be satisfied.firestone logo

The company has entered into a conditional sale agreement with Tango Mining for the Disposal, for a total consideration of US$8.0 million and, asannounced on 13 October 2015 and 6 April 2016, certain terms of the CSA were amended by the amendment letters. 

“Pursuant to a further amendment of the CSA, all conditions of the CSA must now be satisfied by no later than 29 August 2016 (the “Revised Drop Dead Date”),” Firestone said.

“This extension is to enable Tango Mining to finalise the proposed US$30.0 million loan commitment with Vanderbilt Commercial Lending, Inc. to finance the acquisition of the Company’s Botswana operations and to recommence operations at the BK11 mine, as announced by Tango Mining on 24 March 2016.”

Firestone said 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 Drop Dead Date, the Disposal will not complete.

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