Tango Acquires 80% Stake in Diamond Mine in Western Liberia

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Tango Mining Limited (TSXV:TGV), based in Vancouver, British Columbia, has signed an acquisition agreement to acquire an 80% unencumbered interest in the Mano River Project — a diamond mining concern — from West Mining Ltd (“WML”), located in western Liberia, a release from Globe Newswire has said. The property consists of one recently granted 104.3 square kilometer (“km”) diamond mineral exploration license.

Western Liberia is well known for the wide spread occurrence of alluvial diamonds and the known presence of kimberlites.

According to the release, Mineral Exploration License MEL7003018 (MEL) was granted on the September 7, 2018 and expires September 7, 2021. Upon completion of the acquisition of MEL, to be completed by 31 October 2018, Tango shall develop an exploration program by the end of Q1 2019 and carry out the work on the Property. This exploration work is expected to consist of geological and structural mapping, sampling and ground geophysical surveys. As consideration for the acquisition of the 80% interest in the Property, the Company shall assume all holding costs and WML will provide full local support and assistance to Tango within the Republic of Liberia.

The Property is underlain by Precambrian rocks of Archean age within what is known as the Leo-Man Shield. During the 1960s and early 1970s, a joint program between the Liberian Geological Survey (“LGS”) and the United States Geological Survey (“USGS”), collected a significant amount of topographic, airborne magnetic and radiometric data covering the entire country. This resulted in an excellent digital regional exploration database to support future exploration work.

The exploration results importantly identified that the geology of Liberia is very favorable for the occurrence of a wide range of metals and minerals, including gold and diamonds. The LGS and USGS documented approximately 160 kimberlite occurrences in central and western Liberia. Due to the lack of bedrock exposure, access and vegetation, further follow up work was difficult. Since the 1980s, according to the release, exploration for diamond bearing kimberlites has increased significantly and a number of distinct kimberlite clusters have been identified in western Liberia around the Property. This includes Kumgbor, Mano Godua and Weasua and the most important recent discovery, approximately 25 km north of the Property is an area with three identified kimberlites, known as Camp Alpha, which is being explored by a private US funded company.

The Property is underlain by favorable basement geology and within a part of Liberia that is well known for the wide spread occurrence of alluvial diamonds and the known presence of kimberlites but there has been little systematic modern exploration.

The largest active gold mine in Liberia, called the New Liberty Gold Mine, operated by Avesoro Resources (LSE and TSX listed), is located 45 km south west of the Property and commenced production in 2015.

Tango Mining Limited (TGV – TSXV) is a Canadian diversified junior mining company. Tango via its South African subsidiaries hold three thermal coal, metallurgical and processing plant and engineering contracts that process 6.5 Mt of coal per annum, with clientele that include Exxaro. The three projects are located within the Ogies and Highveld coalfields, Mpumalanga Province and Kliprivier coalfield, KwaZulu-Natal Province, South Africa. The Company also holds an interest in the Oena Diamond Mine, an alluvial diamond property, Northern Cape Province, South Africa that has recently recommenced operations under contract to Bluedust Pty. Tango has a continued development plan in place to grow the business using the successful past 19-year business model of the South African operations, an established market presence and its proven successful operational reputation in the coal, base and precious metal and precious stone mining sector in Southern Africa.

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2 COMMENTS

  1. Tango acquisition for who’s benefits? Foreign interests? All those bogus concession arrangemnets need to be redone in liberians’ interest.

  2. I am troubled that there doesn’t seem to be a restriction that set a limit on foreign ownership of resources and/or foreign domination of certain industries in Liberia. All developed countries have limits on how much investors can hold or dominate a certain industry or security and almost every developing countries I’ve dealt with for my firm has substantial limits on foreign investments in sensitive industry. Why would a foreign entity hold 80% ownership in an industry that is a core industry for the nation? In Brazil, for example, foreign investment in the LATAM Airlines (airline industry) in the aggregate cannot exceed 20%. And that limit is the aggregate of all foreign investment. I had to work with my colleagues in the Brazil’s legal Team for my firm to draft policies and procedures that ensure our Bankers and Traders did not breach that investment threshold limit for my firm. There’s a significant economic reason to retain a higher ownership rights to a nation’s nationals than to a foreign entity or individual. The current economic downturn should not be a reason to pledge away significant ownership in sensitive industries and resources to foreign own enterprises or individuals. That will have significant impact on the Gross National Income, thus reducing the per capital income of Liberians. This is because, any growth in wages from growth in employment would be offset by a negative Gross National Income (net loss). There needs to be caution and those performing due diligence and conducting both legal and business analysis of these contractual agreements must possess the subject matter expertise and seek the interest of the nation for both short term and long term economic growth. I don’t see that from my vantage point, which is solely from what I read in the online publications of the local papers, in these agreements.

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