AMN - SOUTH AFRICA: Tango focus on diamonds

With the continued operational success at the Oena Diamond Mine in South Africa, Tango Mining proposes to dispose of the metallurgical and mining projects in the country. The Board of Directors made this decision to allow management the ability focus attention on its diamond properties.

The company is also proposing to change its name to Southstone Minerals Limited, which is subject to the approval of the TSX Venture Exchange.

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, collectively, the Kwena Group.

Kevin Gallagher, a director of Tango and non-arm’s length party, is the purchaser of the company’s interest in the Kwena Group.

As consideration for the acquisition of the 74% interest in the Kwena Group, Kevin Gallagher has agreed to return for cancellation an aggregate of almost 40 million common shares of Tango at a deemed price of C$0.05 per share, collectively held by the Kevin Gallagher and his related parties for aggregate consideration of almost C$2 million.

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 at May 31, 2019, to $1,592,546 and current liabilities will be reduced from $3,678,046 to $1,596,772.

After cancellation of the shares, the issued and outstanding shares will be reduced from 232,602,139 common shares to 192,613,979 common shares. After cancellation of the shares, Kevin Gallagher will not hold any securities of the company, other than stock options.

The company has an informal valuation of its interest in the Kwena Group from March 2017 from an unrelated third party, giving a total value of C$2,302,000.

www.tangomining.com