| Wed 27 Jul 2011, 8:32 | | FSE - Firestone Energy Limited - LOI for sale of 1.2 million tonnes of |
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FSE
FSE
FSE - Firestone Energy Limited - LOI for sale of 1.2 million tonnes of
"A" grade coal
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")
LOI FOR SALE OF 1.2 MILLION TONNES OF "A" GRADE COAL
Firestone Energy Limited (ASX/JSE : FSE) is pleased to announce that
its Joint Venture with Sekoko Resources has received a firm Letter of
Intent "LOI" from Stig Jiangsu Light & Textile Imp. & Exp. Co. Ltd
"Stig Jiangsu", a member of the Sainty International Group. The LOI is
for the purchase of a regular volume of 1.2million tonnes per annum of
prime coal by way of shipments commencing in late 2012. There is a
potential to increase this volume to 2.4million tonnes per annum
depending on the availability of rail capacity to Richards Bay Coal
Terminal.
The coal which is the subject of the transaction will be the higher "A"
grade coal which will be extracted from the Company`s Smitspan property
and which will have a calorific value greater than that required by
Eskom.
The transaction is priced relative to a recognised index and revenue,
this transaction has attracted a premium price for the higher calorific
value, low ash, low phosphate coal product.
It is the intention that the FSE/Sekoko JV and Stig Jiangsu will
progress the LOI to a binding agreement within 90 days.
The joint venture has received a number of inquiries for the purchase
of coal which is surplus to the existing agreement with Eskom. This
LOI is tangible evidence of the marketability of the joint venture`s
coal and underpins the progress which is being made in the development
of a viable coal company.
Yours sincerely
Firestone Energy Limited
David Perkins
Chairman
www.firestoneenergy.com.au
About Sekoko Resources
Sekoko Resources (Pty) Ltd is a South African-based black-owned energy
and minerals company developing the coal, magnetite iron ore and PGMs
Projects in the Limpopo Province of South Africa. This includes a
significant exploration program and development of the Waterberg Coal
Joint Venture Project based on significant Coal Zone Resources. Sekoko
is targeting to commence operations in 2012, thus forming the basis for
developing a global coal business.
About Firestone Energy
Firestone Energy Limited is an independent, Australian exploration and
development company listed on the Australian Stock Exchange Ltd (ASX)
and the Johannesburg Stock Exchange (JSE). Firestone Energy has entered
into a Joint Venture with Sekoko Resources (Pty) Ltd through which
Firestone Energy has acquired the right to 60% participation interests
in the Waterberg Coal Project located in Lephalale area, Limpopo
Province, South Africa.
The first stage of the project is to develop the Smitspan mine which
has a substantial measured thermal coal resource and to develop the
Vetleegte mine which is a substantial metallurgical coal deposit.
Firestone Energy is committed to becoming a profitable independent coal
and energy producer at its projects in South Africa, thereby making a
substantial contribution to the social and economic development of the
Lephalale area and South Africa.
Corporate Details
ASX: FSE
JSE: FSE
Issued Capital:
2,793 million ordinary shares
Major Shareholders:
Sekoko Resources (Pty) Ltd
BBY Nominees Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers
Non Executive Directors:
David Perkins (Chairman)
Dr Pius Kasolo
Colin McIntyre
Executive Directors:
Sizwe Nkosi
Company Secretary:
Jerry Monzu
Contact:
Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (0)8 9287 4600
Pretoria
27 July 2011
Sponsor
River Group
Date: 27/07/2011 08:32:00 Produced by the JSE SENS Department.
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