AIM-quoted diamond development company, Firestone Diamonds plc, announced that it has extended the date by when all conditions for the disposal of its Botswana operations to Tango Mining Limited.
The sale has been a protracted affair, as the sale was originally announced in July 2015, when Firestone and Tango entered into a conditional sale agreement for a total consideration of $8 million. Further announcements on October 13 and April 6 announced that certain terms of the conditional sale agreement (CSA) were amended. Following a further amendment of the CSA must now be satisfied by no later than August 29.
The extension is to enable Tango Mining to finalize the proposed $30 million loan commitment with Vanderbilt Commercial Lending Inc. to finance the acquisition of Firestone’s Botswana operations and to recommence operations at the BK11 mine.
If the conditions of the CSA are not satisfied or waived by the revised drop dead date, the disposal will not complete.