Tango Mining boss Terry Tucker says he is confident the firm will secure the US$8mln it needs to wrap up the purchase of Firestone Diamonds’ Botswana operations.
Tango has managed to turn around a preliminary economic study for the BK11 kimberlite pipe in Botswana just a few short months after agreeing terms for its acquisition from former owner Firestone. Tango’s PEA shows the BK11 pipe to have a net present value of US$40mln at an 8% discount rate and excluding the overall US$8.8mln acquisition costs. The company has until April to pay up and is in talks with financiers in London, South African Botswana and Canada.
Firestone Diamonds’ strategy is to become an efficient mid-tier diamond producer through the development of its flagship asset, the Liqhobong Mine, in the Lesotho Highlands. The Liqhobong Diamond Mine is owned 75% by Firestone and 25% by the Government of the Kingdom of Lesotho. The Company commenced construction of the Main Treatment Plant and related infrastructure at the Liqhobong Diamond Mine in July 2014 with full production, plus 1.1 million carats per annum, targeted for mid 2016.
The Republic of Botswana is a landlocked country located in Southern Africa. An independent nation since 30 September 1966, it has maintained a strong tradition of stable representative democracy, with a consistent record of uninterrupted democratic elections. It is bordered by South Africa to the south and southeast, Namibia to the west and north, and Zimbabwe to the northeast.
A mid-sized country of just over 2 million people, Botswana is one of the most sparsely populated nations in the world and has a GDP per capita of $18,825. Its high gross national income (estimated the 4th in Africa) gives the country a modest standard of living and the highest Human Development Index of continental Sub-Saharan Africa.