Tango Gold Closes Acquisition of Mining in South Africa
Tango Gold Mines Incorporated is pleased to announce that further to its news release dated 1 October 2014, it has closed the acquisition of 51% interest in four private South African companies, which collectively hold a 100% interest in the Oena Project ("Oena"), a past producing alluvial diamond property, and four toll treatment contracts in respect of four mutually exclusive coal operating and production collieries located in the Witbank coal district, Mpumalanga and Natal Provinces, South Africa.
In consideration for the interest in African Star, Tango has issued 49,000,000 common shares, at a deemed price of CAD $0.05 ("Payment Shares"), that are subject to a four month regulatory hold period expiring on 17 February 2015 and escrow restrictions over a 30 month period. Contemporaneously, 17,150,000 of the Payment Shares will be held in escrow pending receipt of applicable approvals required under South African legislation.
The company also announces that, effective immediately, Mr. Kevin Gallagher has been appointed to the Board of Directors, Mr. Marco Moller has been appointed as President and Chief Executive Officer of the Company and Mr. Terry L. Tucker, P.Geo., a director of Tango, has been appointed as Executive Chairman.
Mr. Kevin Gallagher has over 40 years' experience in the mining and metallurgical process engineering industry and was founder and is Executive Managing Director of the Kwena Mining Group (part of African Star). His operational experience includes 14 years as metallurgical supervisor at various coal, gold and platinum plants which includes Harmony Gold, Rand Mines Group & Rio Tinto. Mr. Gallagher is a member of the South African Coal Processing Society, a member of the Mine Metallurgical Managers Association, holds a Diploma (Hon) Mineral, Processing & Extractive Metallurgy from the School of Mines Rhodesia and completed the Management Development Programme with the Graduate School of Business, University of Cape Town (UCT).
Mr. Marco Moller has over 30 years' experience in the Southern African mining, energy markets and the export manufacturing and engineering sectors, which includes CEO of African Star. Mr. Moller was also founder and Executive Managing Director of AFRICO Engineering and JOSS Steelworks and was group financial controller of Firestone Diamonds PLC, where he was part of the key management team responsible for developing various alluvial and kimberlitic assets from early exploration through to production status. Mr. Moller holds an MBA from UCT, a B.Com postgraduate degree at the University of South Africa (UNISA) and has completed the South African Institute of Chartered Accountants (SAICA) training program with PriceWaterhouse Coopers.
Both a finder's fee of USD $100,000 was paid and 1,474,522 common shares (at a deemed price of CAD $0.05 per share) were issued as consideration for consulting services rendered to an arm's length third party. These shares are restricted from trading until expiry of the regulatory hold period on 17 February 2015.