13th Oct 2015 06:58
LONDON (Alliance News) - Firestone Diamonds PLC Tuesday said it has agreed to extend the deadline by which it will sell its Botswana operations to Tango Mining until April 2016 after the deal hit a snag earlier this month.
Firestone agreed to sell its Botswana operations To Tango Mining for just under USD8.0 million, but the deal hit an obstacle in early October after Tango was unable to pay the deposit required by the sale agreement.
Tango was expected to pay a USD300,000 deposit into an escrow account before the end of September but requested more time as it was unable to make that payment. On Tuesday, Firestone said it has agreed to give Tango until April 8, 2016 to satisfy the outstanding conditions of the deal.
Before that amended deadline, Firestone will need to pay that deposit and also the other USD7.7 million needed to complete the deal, which will also need approval from the government of Botswana and the Toronto Stock Exchange.
In addition, Tango is responsible for the cumulative cost of the operations care and maintenance programme between now and whenever the deal is completed up to a maximum of USD40,000 per month.
"If the conditions of the conditional sales agreement are not satisfied or waived by the revised drop dead date, the disposal will not complete. Furthermore, Tango Mining has agreed to meet certain milestones prior to the drop dead date, and in the event such milestones are not met and/or achieved the company has the right to waive such milestones and/or terminate the conditional sales agreement," said Firestone.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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