Tanga Resources Ltd. secured a binding option to acquire 100% of the issued shares of Namibia-registered Coldstone Investments (Pty) Ltd.
Coldstone has a joint venture agreement with Namibian government-owned Epangelo Mining Co. (Pty) Ltd. to secure up to a 90% interest in the Joumbira zinc-lead-silver project in Namibia.
Coldstone owns a 10% stake in the project, which will increase to 40% in February 2018. It can then increase the interest to 80% by spending at least US$1 million over the next two years. Following the earn-in, Coldstone can dilute Epangelo to a 10% free-carried interest.
Tanga intends to start a diamond drilling program on the project in February 2018, it said Dec. 5.
Upon completion, Ian Stuart will join Tanga's board as a nonexecutive director. He has spent the past three years advancing the Joumbira project.
Tanga can acquire all of the issued shares in Coldstone by issuing 44.0 million shares and paying a total of A$750,000.
Meanwhile, the company has secured commitments to raise a total of about A$1.2 million by issuing 116.4 million common shares at 1 Australian cents apiece.
The funds will be used to complete the transaction, for work programs, due diligence matters, additional exploration at Joumbira, exploration at its Hanang gold project in Tanzania, tenement costs, and for general working capital.
