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Tango shares drop on changes to Botswana, Liberia diamond exploration deals

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Tango shares drop on changes to Botswana, Liberia diamond exploration deals

Shares in Tango Mining Ltd. dropped 25% on March 12 after announcing changes to its diamond exploration deals in Botswana and Liberia.

In a March 11 release, Tango said it terminated its agreement with Metswedi Mining Pty. Ltd. to acquire a 75% stake in the Middlepits project in Botswana. The company will instead focus on brownfield projects that are faster to develop.

Tango also amended its deal with West Mining Ltd. to increase its ownership in the Mano River project in Liberia to 90%.

The company said the project will be transferred to Tango's newly established Liberian unit, Tango Mining (Liberia), that will be 90%-owned by Tango and 10%-owned by West Mining.

In addition, West Mining will be entitled to a 1.5% royalty on future production from Mano River.