Canadian company Tango Mining has entered into a partnership with CC Energy’s (CCEL) subsidiary of CC Mining for diamond projects in Angola, southern Africa.
According to the report by Mining Technology, the companies have agreed as part of the the agreement to invest $1.3m, which Tango will use towards development of its Txapemba Project in Angola.
Under the service agreement, Tango is responsible for capital expenditures associated with alluvial mine design and equipment acquisition and is the sole operator.
In return, Tango will receive 60% of net proceeds from selling produced stones, after deduction of the company’s operational costs.
In September last year, Tango signed a three-year renewable services agreement for mining and marketing of diamonds with Txapemba Canguba RL for the semi-industrial exploitation of diamonds.
It is reported that Txapemba will be the first collaborative project between the two companies.
The investment will include both a debt and equity contribution to a new special purpose company, is subject to a renewal of the project and transfer of the service agreement to a new subsidiary of Tango and other conditions precedents.
Upon completion of final legal documentation, the company will provide terms and conditions of the investment.
Since Tango took operational control of the project last October, it has seen earth moving equipment mobilised for construction, with roads upgraded and maintained, as well as trenching having been completed in two areas in order to identify diamondiferous gravels.
With support from the Txapemba Caguba RL technical team, the company will continue its geological and technical assessment of the project that will result in developing a work plan.
The company intends to start bulk sampling and small-scale alluvial diamond production this year.
Through its South African subsidiaries, Tango holds three thermal coal, metallurgical, processing plant and engineering contracts that process 6.5Mt of coal per annum with client Exxaro.