Zard acquired from Tango an 8% interest in African Star Minerals, which owns 100% of the Oena diamond mine.
The mine consists of an 8,800-hectare converted mining right (CMR) on the lower Orange River, Northern Cape province, South Africa.
An application for a nine year renewal of the CMR is pending. The transfer of the 8% interest to Zard is subject to South African regulatory consents and approvals required to implement the transaction.
Tango received from Zard US$35,000 for the 8% stake in ASM.
Tango has placed in escrow around 3.245mln shares as security for Zard's interest in ASM to be held while the CMR is being renewed, which will be cancelled and returned to treasury upon renewal.
If it is not renewed, the escrowed shares will be released to Zard and he will transfer back to Tango a 31% interest in ASM, being the 8 per cent acquired from Tango and the 23-per-cent interest acquired privately from Kevin Gallagher.
Additionally, in the event that Tango does not receive the necessary consents and approvals as required under South African regulations and the transfer of the 8 per cent of ASM cannot be effected, Tango will release 930,755 of the escrowed shares to Zard, it added.
Tango also revealed it had issued 375,400 shares in the capital stock of the company at five cents each in full and complete settlement of indebtedness.
Tango shares lost over 9% to $0.05.