| Wed 2 Feb 2011, 7:05 | | FSE - Firestone Energy Limited - Coal off-take agreement and withdrawal of |
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FSE
FSE
FSE - Firestone Energy Limited - Coal off-take agreement and withdrawal of
cautionary announcement
FIRESTONE ENERGY LIMITED
(Incorporated in Australia)
(Registration number ABN 058 436 794)
Share code on the JSE Limited: FSE
Share code on the ASX: FSE
ISIN: AU000000FSE6
(SA company registration number 2008/023973/10)
("FSE" or "the Company")
COAL OFF-TAKE AGREEMENT AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Firestone Energy Limited, "Firestone" (ASX/JSE: FSE), wishes to announce that
it has received notification from its Joint Venture partner, Sekoko
Resources, that a Memorandum Of Understanding "MOU" was signed last Friday,
28th January 2011, between Eskom Limited and Sekoko Coal in Johannesburg.
The parties have formally agreed on a Coal Off-take Agreement whereby the
FSE/Sekoko Joint Venture`s farms, which are all located within the Waterberg
coal region, will supply coal product to the nearby Eskom state owned coal
power station, called Matimba, which is 20km from the Smitspan open pit.
The first term of the supply contract is for 6 years with first delivery by
April 2012.
An extension for an additional 15 year period to the year 2032 is being
negotiated, in good faith, and will form part of the same MOU when the boards
of both companies have finalised certain details.
The specifics of this 21 year supply contract will be submitted when a final
written copy is received by the Firestone board.
Withdrawal of Cautionary Announcement
With reference to the cautionary announcement published on Friday, 28
January, and on Monday, 31 January, shareholders are advised that caution is
no longer required to be exercised when dealing in the Company`s securities.
The Company has therefore requested the JSE to lift the trade halt on its
securities, effective with the commencement of trade today.
Enquiries:
Firestone Energy Limited
+61 8 9287 4600.
David J Perkins
Chairman
Jerry Monzu
Company Secretary
Johannesburg
2 February 2011
Sponsor and Corporate Advisor
River Group
Date: 02/02/2011 07:05:16 Produced by the JSE SENS Department.
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