Tango Gold Mines Incorporated (TSX VENTURE: TGV) (the “Company”) provides a corporate update on activities in Nicaragua.
Under the terms of its option agreement dated 30 April 2010 (the “IMISA Agreement”) with Inversiones Mineras, S.A. (“IMISA”), the Company has the exclusive right and option (the “Option”) to acquire 100% of the 9,300 hectare Topacio mining concession in south-central Nicaragua (the “Topacio Concession”) by paying the purchase price of USD $3,000,000 on or before 30 April 2016, subject to a 3% net smelter return royalty in favour of IMISA. In addition, the Company is required to make USD $90,000 semi annual payments on 1 May and 1 November of each year until the purchase price is paid. In light of, among other things, existing market conditions and the size of the current National Instrument (NI) 43-101 compliant inferred resource on the Topacio Concession (see news release dated 21 November 2012) the Company has re-evaluated the economics of its proposed acquisition of the Topacio Concession and determined to cease further exploration activities unless it can re-negotiate the purchase price under the IMISA Agreement. To this end, the Company has presented an offer to IMISA for the immediate purchase of a 100% interest in the Topacio Concession, which, if successful, could potentially enable the Company to secure financing opportunities to continue with an evaluation, development and execution plan for the concession. There are no assurances that the Company will be successful in its efforts to re-negotiate the purchase price for the Topacio Concession on satisfactory terms, failing which the Company intends to terminate the Option.
As a result of the foregoing, the Company has not made the USD $90,000 semi-annual payment that was due to IMISA on 1 November 2013 and restructured its operations in Nicaragua such that, as of 1 January 2014, all technical consultants and other staff will be engaged solely on an hourly rate or daily rate basis as needed from time to time. As part of such restructuring Andrew Neale will be stepping down as CEO of the Company effective 13 December 2013 and the Company wishes Mr. Neale every success in his future endeavors. Mr. Antonio Ponte, Executive Chairman of the Company, has been appointed as Chief Executive Officer, effective immediately.
The Company currently has approximately CAD $1,700,000 in cash in its treasury, no debt, and is evaluating numerous other opportunities that are available for acquisition.
About Tango Gold Mines Incorporated
Tango Gold Mines Incorporated is a Canadian company with two principal precious metal properties in the Republic of Nicaragua.