| Fri 12 Jun 2009, 10:09 | | FSE - FSE - FSE Announces A$2.07 Million share pla |
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FSE
FSE
FSE - FSE - FSE Announces A$2.07 Million share placement and board restructure
and lifting of trading halt
FIRESTONE ENERGY LIMITED
(formerly Centralian Minerals Limited)
(Registration number: ABN 058 436 794)
(SA company registration number: 200/023973/10
Share code on the JSE: FSE
Share code on the ASX: FSE
ISIN: AU000000FSE6
("FSE" or "the Company")
FSE ANNOUNCES A$2.07 MILLION SHARE PLACEMENT AND BOARD RESTRUCTURE AND LIFTING
OF TRADING HALT
Highlights:
* Placement to raise A$2.07 million with funds to be used toward the Sekoko
Coal transaction and other working capital requirements.
* Board capacity further strengthened to position the company for future
growth.
Funding
Firestone Energy Limited (ASX:FSE / JSE:FSE) ("Firestone" or "the Company") is
pleased to announce that it has received firm commitments to undertake a
placement to raise A$2.07 million ("Placement"). The funds are intended to be
used toward agreed funding commitments in relation to the transaction with
Sekoko Coal (Pty) Ltd, which was announced to ASX on 1 April 2009, and other
working capital requirements.
Placement details:
* The purpose of the Placement is to raise A$2.07 million by way of the issue
of 51,750,000 ordinary shares in the Company at A$0.04 per share (a premium
of 18% to the closing price on 11 June 2009), plus one free attaching
unlisted option for every two shares allotted. The 25,875,000 options are
exercisable at 6 cents each and have an expiry date of 30 June 2014.
* The shares issued pursuant to the Placement will carry standard rights
applicable to ordinary shares in FSE and will, from the date of issue, rank
equally with fully paid ordinary shares currently on issue.
* The Placement will be made to a range of investors without disclosure in
accordance with section 708 of the Corporations Act 2001 (Cth).
* The Company will not seek shareholder approval prior to the issue of the
shares and options, and will rely on its 15% placement capacity under
Listing Rule 7.1.
Board Restructure
Two Non-Executive Directors, Messrs Lee Boyd and Daryl Henthorn have resigned
from the Board, effective immediately. The Company thanks Messrs Boyd and
Henthorn for their services.
The Board is pleased to announce that a highly experienced and widely respected
mining engineer with extensive board experience and practical mining experience
in open pit and underground mining has consented to join the Board of
Firestone. Further details will be announced as soon as possible.
Commenting on the appointment and capital raising, Managing Director, Mr Garth
Higgo said:
"The appointment will further strengthen the Board as it seeks to position the
Company for the next phase in its growth strategy to establish a commercial
mining operation in the highly prospective and strategic Waterberg coal
region".
"The capital raising at an attractive premium to the recent trading price for
FSE shares is a vote of confidence in the direction and growth prospects of the
Company as well as providing some additional balance sheet comfort and
operational flexibility over the short-medium term. The Company is in the
process of exploring longer term funding options, including for the Bankable
Feasibility Study, and will advise these upon finalisation".
About Firestone Energy
Firestone Energy Limited is a Perth based exploration company listed on the
Australian Stock Exchange (ASX: FSE) and the Johannesburg Stock Exchange
(JSE:FSE).
Firestone is an exploration company that sources and develops viable mineral
projects with a particular focus at this time on coal prospects in the
Waterberg Coal Field, South Africa.
The Company has joint ventures with Sekoko Coal over two farms located in the
Waterberg coalfield in the Limpopo Province of South Africa. This coalfield is
becoming increasingly important as coal reserves in the Witbank, Highveld and
Ermelo coalfields of the Mpumalanga Province, which currently supply the
majority of Eskom`s coal power stations, become depleted over the next 20-30
years.
The Company recently signed a further agreement with Sekoko Coal over four
farms which will add up to 1 billion tonnes of coal to its existing holdings in
the Waterberg coal field. This joint venture is still subject to regulatory and
shareholder approvals.
For more information please contact:
Garth Higgo
Chief Executive Officer
+61 (08) 9381-2755
www.firestoneenergy.com.au
Registered Office
63 Hay Street
Subiaco 6008
Western Australia
Facsimile: +61 (08) 9381 4799
Email: enquiries@firestoneenergy.com.au
Firestone Energy Limited (ABN 71 058 436 794)
Level 1 63 Hay Street Subiaco WA 6008 Australia
PO Box 8284 Subiaco East WA 6008 Australia
T: +61 8 9381 2755 F: +61 8 9381 4799
Date: 12/06/2009 09:48:01 Produced by the JSE SENS Department.
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