Tango Mining Limited has formed a partnership with CC Mining Limited (CCML) with regard to diamond projects in Angola. A term sheet has been signed for a US$1.3 million investment that Tango will use towards the development of its Txapemba project.
CCML is a wholly-owned subsidiary of CC Energy Limited (CCEL), which is a member of the Consolidated Contractors Company (CCC) group.
Tango has previously signed a three-year renewable services agreement for mining and marketing of diamonds with Txapemba Canguba RL for the semi-industrial exploitation of diamonds.
According to this service agreement, Tango is responsible for capital expenditures associated with alluvial mine design and equipment acquisition and is the sole operator. As remuneration, Tango will receive 60% of the net proceeds from the sale of produced stones, after deduction of Tango’s operational costs.
Txapemba will be the first collaborative project between Tango and CCML and the investment will include a debt and equity contribution to a new special purpose company. The investment is subject to a renewal of the project and transfer of the service agreement to a new subsidiary of Tango as well as other conditions precedents.
Tango took operational control of the project on October 23, 2017. Since then, the project has been secured, earthmoving equipment has been mobilised for the construction, upgrade and maintenance of roads and trenching has been completed in two areas to identify diamondiferous gravels.
The company will continue its geological and technical assessment of the project with the invaluable support of the Txapemba Caguba RL technical team working with Tango’s technical team that will result in the development of a work plan but maintains its intent to commence bulk sampling and small-scale alluvial diamond production in early 2018.
CCC was created in 1952 and has become one of the world’s largest diversified international engineering and construction companies active in over 50 countries and across five continents. Their portfolio includes oil and gas, heavy civil, buildings, infrastructure, mining, energy power and real estate.
CCEL is an associated company of CCC and is an independent oil and gas upstream exploration and production company with operated and non-operated interests in assets in Nigeria, Oman, Gaza and Yemen. Its asset portfolio includes a diverse mix of exploration, development and production assets.
Tango, via its South African subsidiaries, holds three thermal coal, metallurgical, processing plant and engineering contracts that process 6.5 million tonnes of coal annually with client Exxaro.
The company also holds an interest in the Oena Diamond Mine, a producing alluvial diamond property in the Northern Cape Province, South Africa. It also recently signed an agreement on an alluvial diamond project in Botswana called the Middlepits project.