| Tue 22 Sep 2009, 8:23 | | FSE - Firestone Energy - Documents Executed For $25 Million Capital Raising |
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FSE
FSE
FSE - Firestone Energy - Documents Executed For $25 Million Capital Raising
To Fund Growth Plans
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")
DOCUMENTS EXECUTED FOR $25 MILLION CAPITAL RAISING TO FUND GROWTH PLANS
Firestone Energy Limited (ASX:FSE / JSE:FSE) ("Firestone" or "the Company") is
pleased to announce that it has now executed binding documentation for the
fully underwritten A$25m capital raising involving the issue of Convertible
Notes with a conversion price of A$0,04 per share ("Convertible Notes")
announced on 11 September 2009.
Use of proceeds
As announced on 11 September 2009, Firestone intends to allocate the net
proceeds from them the issue of the Convertible Notes towards:
- Meeting all financial commitments due to its Joint Venture partner,
Sekoko Coal (Pty) Limited per the schedule of Transaction payments
announced to the market on 11 September 2009.
- The Bankable Feasibility Study for a large scale 18Mt per annum coal
mining operation at the Company`s Waterberg coal project in South Africa
which cost are anticipated to occur over the next 12 months.
- Additional working capital requirements.
The issue of the A$25 million of Convertible Notes is at Firestone`s election
and is underwritten, and to be managed by BBY Ltd. The Convertible Notes are
to be issued to professional and sophisticated investors within the meaning of
section 708 of the Corporations Act.
An initial issue will be completed without shareholder approval under
Firestone`s existing 15% capacity under ASX Listing Rule 7.1. Firestone
intends to seek shareholder approval under ASX Listing Rule 7.4 for the
initial issues and shareholder approval for the issue of the balance of the
Convertible Notes under ASX Listing Rule 7.1 at its 2009 Annual General
Meeting.
Key terms of the Convertible Note
The following is a summary of the key terms of the Convertible Notes.
Issuer Firestone Energy Limited
Security Unsecured
Issue Price A$500,000 per Convertible Note
Interest Rate 10% p.a. payable semi-annually
Term 3 years from the date of issue
Issue Size Up to A$25 million
Conversion Process Holders of Convertible Notes
may elect to convert them at
any time prior to 2:00pm AWST
on the last day of the terms.
Conversion Factor On conversion, each Convertible
Note will convert into
12.5million fully paid ordinary
shares (at an effective issue
price of A$0,04 per share).
The shares will rank equally
with the existing fully paid
ordinary shares in Firestone
except in respect of the
restrictions of transferability
noted below.
Underwriting Agreement
The issue of the Convertible Notes is underwritten by BBY Limited on the terms
of an underwriting agreement containing customary terms. These terms include
terms permitting the underwriter to terminate the agreement on occurrence of
certain termination events. These termination events include market fall
events based on a 12% fall in either the S&P/ASX200 Index or S&P/ASX 200
Materials Index.
The underwriter may only terminate the underwriting agreement based on the
occurrence of a termination event if the event would have a material adverse
effect on the offering of the Convertible Notes, the likelihood of the
underwriter or its agents incurring any liability, or the tax position of
Firestone.
About Firestone
Firestone Energy Limited is a Perth based Company listed on the Australian
Securities Exchange (ASX:FSE) and the Johannesburg Stock Exchange (JSE:FSE).
The Company 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 six farms located in the
Waterberg coalfield in the Limpopo Province of South Africa. This coal field
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, are expected to become depleted over
the next 20-30 years.
Investors are invited to refer to Firestone`s announcements available on
www.firestoneenergy.com.au and the Australian Securities Exchange`s website
www.asx.com.au for further information about Firestone.
For more information please contact:
Garth Higgo
Chief Executive Officer
+61 (08) 9381-2755
www.firestoneenergy.com.au
Pretoria
22 September 2009
Sponsor and Corporate Advisor
River Group
Date: 22/09/2009 08:23:01 Produced by the JSE SENS Department.
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