| Tue 6 Sep 2011, 8:48 | | FSE - Firestone Energy Limited - Linc Energy takes Strategic Stake in Firestone |
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FSE
FSE
FSE - Firestone Energy Limited - Linc Energy takes Strategic Stake in Firestone
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")
LINC ENERGY TAKES STRATEGIC STAKE IN FIRESTONE
Firestone Energy Limited (ASX / JSE: FSE) ("Firestone" or the "Company") is
pleased to announce that the Company has completed a placement of approximately
150 million shares at A$0.012 per share, under the Company`s 15% capacity, to
ASX listed global energy company Linc Energy Limited (ASX:LNC), raising A$1.8M.
Following the placement, Linc Energy will hold approximately 9.6% of Firestone`s
issued capital.
BBY Limited was the Lead Manager to the Placement.
The funds will be allocated towards Firestone`s general working capital
requirements for the development of the flagship Smitspan project.
David Perkins, Chairman of Firestone, commented "We welcome Linc Energy as a
significant shareholder in Firestone and we look forward to working with Linc as
the Firestone/Sekoko JV brings the Smitspan mine into production."
As part of the placement, Firestone has granted to Linc Energy its Underground
Coal Gasification, oil and gas rights over the tenements that are subject of the
JV between Firestone and its partner, Sekoko Resources. A detailed agreement
between the parties will be entered into in the short term.
Peter Bond, CEO of Linc, said "This investment by Linc marks our most
significant foray into the growing, energy hungry African continent. We believe
this investment will be value accretive for Linc shareholders as the
Firestone/Sekoko JV owns billions of tonnes of coal, ranging from higher value
metallurgical coal, thermal coal for power generation through to coal which
appears suitable for Linc`s Underground (UCG) and above ground (powerhouse)
gasification processes. I look forward to working with the Firestone/Sekoko JV
to maximise the value of these assets. This investment is a classic Linc Energy
play whereby we as a company secure significant mineral resources in a potential
area as a cornerstone to doing business in that location, yet gaining potential
upside by smart buying of strategic mineral assets. "
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:
2,808 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
6 September 2011
Pretoria
Sponsor and Corporate Advisor
River Group
Date: 06/09/2011 08:48:01 Produced by the JSE SENS Department.
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