09:53:43 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Tango Gold Mines Inc
Symbol TGV
Shares Issued 148,926,710
Close 2014-10-29 C$ 0.03
Market Cap C$ 4,467,801
Recent Sedar Documents

Tango expects fiscal 2015 revenue of $11.98-million

2014-10-30 12:51 ET - News Release

Mr. Terry Tucker reports

TANGO GOLD OPERATIONAL AND TARGET FORECASTS

Tango Gold Mines Inc. has provided an operational update on El Santo, Nicaragua, and its recently acquired African Star Minerals Group (ASM) operations in South Africa for its first quarter ending November, 2014, and year-end ending August, 2015.

Highlights

  • ASM's four thermal coal, metallurgical and processing plant contracts, with clientele that include Total (SA) and Glencor, are forecast to process 6.5 million tonnes per year. and 19.5 million tonnes are contracted over next three years, with total current staffing complement of 285;
  • Forecasted revenue generation of $11,984,000 for the fiscal year ending August, 2015;
  • Oena diamond mine development decision pending completion of National Instrument 43-101 report;
  • Jakkelsdraai alluvial diamond prospecting work program to commence in December, 2014;
  • The company will change its name to Tango Mining Ltd., subject to TSX Venture Exchange approval, to complement its vision to become a diversified junior mining company with interests in precious and base metals, coal, diamond and precious stone mining projects.

Marco Moller, president and chief executive officer, commented: "We are very pleased with the successful closing of the acquisition of the African Star Minerals Group and effective control now vesting in Tango. This acquisition provides Tango with the means to expand from a purely exploration-focused organization to that of a mining concern with projects that currently generate free cash flow and near-term production. Some of the African Star entities have been operating in the precious metal, base metal, thermal coal and diamond industry for 18 years, and the successful union of existing operating know-how and technical knowledge, with that of Tango's understanding of the international finance markets, will allow us to grow the company, adequately renamed Tango Mining Inc. We are confident that we are well positioned to realize our vision to become a diversified junior mining concern with a portfolio of production, development and exploration assets, and have the technical capability to successfully conclude the acquisition of commercially feasible opportunities in both the South African and global mining sector.

"We are confident that we will see positive production results over the next quarter that will support the generation of a positive EBITDA [earnings before interest, taxes, depreciation and amortization]. The performance of our existing production assets have been outstanding in terms of the mine call factor achieved on existing contracts, which in turn are complemented by the potential increased in diamond recovery efficiency through the introduction of new-generation X-ray technology.

"The possible acquisitions of new precious and gemstone mining tenements also underpins Tango's conviction to grow while maintaining profitability during the current financial year."

Metallurgical process engineering contracts

  • Existing mining contracts:
    • Four thermal coal, metallurgical and processing plant and engineering contracts currently in place to process 6.5 million tonnes per year with clientele that include Total (SA) and Glencor;
    • Located in the Witbank coal district, Mpumalanga and Natal provinces, South Africa;
    • Target production of 19.5 million tonnes contracted over next three years;
    • Employment and total staffing complement of 285;
  • Financial consideration:
    • Revenue forecast of $2,133,000 for the first quarter of 2015 ending November, 2014, and $11,984,000 for the financial year ending August, 2015;
  • Business development:
    • Continued development plans in place to grow the business using the successful past 18-year business model, an established market presence and the company's proven successful operational reputation in the coal, base and precious metal and precious stone South African mining sector.

Oena diamond mine

  • Project description:
    • Covers an area of 8,800 hectares consisting of a 4.8-kilometre-wide strip along a 15-kilometre length of the Orange River in a well-established alluvial diamond mining province that produces high-quality and large-sized diamonds;
    • Located 50 kilometres up stream of Namdeb's Auchas and Daberas alluvial diamond mines, which are on the Namibian or north bank of the Orange River, while Trans Hex's Reuning and Baken alluvial diamond mines are respectively 15 kilometres and 60 kilometres down stream of Oena on the South African or southern bank of the Orange River;
  • Operational readiness:
    • Mine development decision to be made in the second quarter of 2015 (December, 2014, to February, 2015) following completion of continuing evaluation work program, receipt of government approval on the Tango acquisition transaction and the issuance of an NI 43-101 report;
    • An infrastructure and operational readiness program of $618,000 was completed prior to Tango's acquisition in October, 2014;
    • Mining contract to sustain extraction of 1.59 million tonnes per year concluded with mobilization of first earthmoving equipment planned for December, 2014;
  • Financial consideration:
    • Planned capital expenditure of $292,000 in the first and second quarters of 2015 (September, 2014, to February, 2015) on plant equipment, operational readiness and infrastructure development costs;
    • Implementation of program to maximize mining throughput and enhance the recovery potential of diamonds from Oena with use of high-volume X-ray and recovery equipment manufactured by Bourevestnik Inc.

Exploration work programs

  • Jakkelsdraai alluvial diamond project:
    • This project occupies two strategic positions with respect to the Krom and Sout Rivers in South Africa;
    • Approved Department of Minerals and Energy prospecting work program to commence with planned survey and drilling in December, 2014;
  • El Santo project:
    • Company expects to receive environmental permit that would allow commencement of prospecting work program in the second quarter of 2015.

Corporate

Pursuant to its stock option plan, the company has granted stock options to certain directors and officers of the company to purchase up to a total of 2.05 million common shares in the capital stock of the company. The options are exercisable at a price of five cents per share for a term of five years from the date of grant. The company has issued 500,000 common shares, at a deemed price of five cents per share, to a director in recognition of his efforts to successfully complete the company's acquisition of African Star Minerals.

We seek Safe Harbor.

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