Firestone Diamonds extends deadline for deal with Tango Mining

Diamond development company Firestone Diamonds plc is extending the date by when all conditions for the disposal of the company's Botswana operations to Tango Mining Limited are required to be satisfied.

The company entered into a conditional sale agreement (CSA) with Tango Mining for the disposal, for a total consideration of US$8.0 million on 9 July 2015. Further, on 13 October 2015 certain terms of the CSA were amended by the amendment letter.

Pursuant to a further amendment letter, all conditions of the CSA and Amendment Letter must now be satisfied by 29 July 2016, which is the revised drop date. The terms of the CSA allows for the Revised Drop Dead to be extended, in certain circumstances, to 29 August 2016.

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.