| Tue 3 May 2011, 7:35 | | FSE - Firestone share purchase plan |
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FSE
FSE
FSE - Firestone share purchase plan
FIRESTONE ENERGY 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")
FIRESTONE SHARE PURCHASE PLAN
Firestone Energy Limited (ASX/JSE:FSE - "Firestone") is pleased to announce that
it proposes to offer eligible shareholders, being shareholders with registered
addresses in Australia and New Zealand that are on the register at 5pm Sydney
time on Friday 29 April 2011 ("Eligible Shareholders"), the opportunity to
purchase shares in Firestone and be allocated free attaching options through a
Share Purchase Plan ("SPP"). Firestone is investigating with the JSE and South
African legal counsel, whether or not the SPP can be extended to shareholders
who are residents of South Africa and a further announcement will be made in
this regard.
The SPP will enable Firestone to raise up to a maximum of A$10 million which
will provide funds for Firestone to continue ordering long lead construction
items to bring its Waterberg coal project into production in 2012, as well as
for additional working capital requirements.
Mr David Perkins, Chairman of Firestone commented, "Firestone and our JV partner
Sekoko Resources have achieved a number of critical milestones over the last six
months as we move to bring our flagship Waterberg project into production next
year. This has included:
the signing of a key Memorandum of Understanding with South African power
utility Eskom;
the execution of a definitive agreement with the Industrial Development
Corporation of South Africa;
significant drilling results at the southern farms, including Vetleegte
which has confirmed significant metallurgical coal potential;
the signing of the shareholders agreement - Firestone now has 60% ownership
of all 8 properties; and
the mining rights audit completed at the regional DMR and now been
transferred to the National DMR for final consideration and approval.
"We have already commenced ordering long lead engineering items to bring our
project into production and this SPP gives our
6800 shareholders the
opportunity to participate in the company`s rapid development program. We look
forward to updating shareholders in the short term as development milestones are
achieved", he said.
BBY Limited is acting as Corporate Advisor to Firestone for the SPP.
Offer Summary - SPP Shares
Eligible Shareholders will have the opportunity to purchase up to A$15,000 worth
of new fully paid ordinary shares at a discounted price per share to the market
average, without brokers` costs or stamp duty. Shares are to be offered under
the SPP at a price of A$0.02 each. The issue of the shares under the SPP is not
subject to shareholder approval. Participation in the SPP is optional.
The SPP is non-renounceable. This means that Eligible Shareholders who do not
take up their entitlement to participate in the SPP will not be able to transfer
or receive any value for these entitlements.
The SPP offer is intended to be open between 9 May 2011 and 27 May 2011.
Firestone, however, reserves the right to close the SPP offer early. Should
there be any oversubscriptions, entitlements will be scaled back on a pro rata
basis.
Offer Summary - Free attaching Options
Participating Eligible Shareholders will also receive one attaching free option
for every two shares subscribed for under the SPP. Due to ASX Listing Rules
requirements participating Eligible Shareholders that are also "related parties"
of Firestone will not be eligible to receive any options.
These options will have a strike price of A$0.04 each and an expiry date of 31
May 2014. Firestone will apply for the options issued to be quoted on the ASX.
For legal reasons, the offer of shares under the SPP and the offer of the free
attaching options will be made under separate offer documents.
SPP offer documentation
The SPP offer documentation (consisting of an SPP offer booklet, prospectus for
the free attaching options and combined application form for the shares and free
attaching options) will be mailed to Eligible Shareholders on or about 9 May
2011. Non-Eligible Shareholders will not be entitled to participate in the SPP
and should contact the Company Secretary should they have any queries.
Further details relating to the SPP, including how to participate, will be
provided in the SPP offer documentation.
Timetable
Indicative key dates in respect of the SPP (which are subject to change) are set
out below:
Date Event
Friday 29 April 2011 SPP record date
Monday 9 May 2011 SPP offer opens and documents mailed to
Eligible Shareholders
Friday 27 May 2011 SPP offer closes
Monday 30 May 2011 Firestone receives the proceeds under
SPP
Friday 3 June 2011 Expected allotment of new shares and
free attaching options under SPP
Monday 6 June 2011 Dispatch of holding statements for new
shares and free attaching options
ABOUT FIRESTONE ENERGY
Firestone Energy Limited is an independent Australian exploration company
focused on developing coal projects in South Africa. The Company is currently
exploring the richly endowed Waterberg coal field in the Limpopo Province of
South Africa.
The Company is committed to value-added growth through becoming an independent
coal and energy producer at its projects in South Africa.
The Company has entered into three joint ventures with Sekoko Resources; a South
African black empowerment company (BEE) and Sekoko has two directors on the
Board of Firestone Energy.
Corporate Details
ASX: FSE
JSE: FSE
Issued Capital:
2,627 million ordinary shares
Major Shareholders:
Sekoko Resources (Pty) Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers:
Non Executive Directors:
David Perkins (Chairman)
Sizwe Nkosi
Colin McIntyre
Pius Kasolo
Peter Tshisevhe
Company Secretary
Jerry Monzu
Contact:
Unit B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (0)8 9287 4600
Web: www.firestoneenergy.com.au
For further information please contact:
Jerry Monzu
Company Secretary
Tel: +61 8 9287 4600
www.firestoneenergy.com.au
Pretoria
3 May 2011
Sponsor
River Group
If you have any enquiries in relation to this announcement, please contact the
Company Secretary on +61 (0)8 9287 4600.
Jerry Monzu
Company Secretary
www.firestoneenergy.com.au
Date: 03/05/2011 07:35:01 Produced by the JSE SENS Department.
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