| Wed 7 Mar 2012, 8:32 | | FSE - Firestone Energy Limited - Cornerstone Investor |
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FSE
FSE
FSE - Firestone Energy Limited - Cornerstone Investor
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")
CORNERSTONE INVESTOR
The Board of Firestone Energy Limited (ASX/JSE: FSE) ("Firestone" or the
"Company") is pleased to advise shareholders that the Firestone and Sekoko joint
venture (JV) has received a formal offer from The Tata Power Company Ltd (Tata)
to invest in the JV. If Firestone accepts the offer and if all of the
conditions precedent are satisfied, the ownership interests of the JV will be
adjusted so that Tata will hold 30% of the Project. The proposed investment
offer is based on 100% of the JV`s Waterberg Coal Project being valued at
ZAR1,045 million (approximately AUD 130 million).
The highly conditional offer proposes that Tata enters into a new joint-venture
arrangement with Firestone and Sekoko to develop the Waterberg Coal Project and
envisages acquiring a 30% interest in the JV in two stages, being:
* an interim funding stage during which Tata will provide debt funding
to the Waterberg Coal Project that will be converted into equity upon
completion of the final stage; and
* a final funding stage during which Tata will subscribe for shares in
the JV company.
David Knox, the Chief Executive Officer of Firestone said "The Board is very
pleased to have received this formal offer for a substantial portion of the
Waterberg Coal Project from such a highly respected multinational power company.
The Firestone Board is assessing the offer to ensure that it fully reflects the
value of this significant asset. The receipt of such an offer vindicates the
Board`s belief in the Waterberg Coal Project and adds confidence for the
future."
The Board is reviewing the offer and will communicate its findings and proposed
further actions to shareholders in a future announcement.
Yours sincerely,
David Knox
Chief Executive Officer
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.
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:
3,114 million ordinary shares
Major Shareholders:
Sekoko Resources (Pty) Ltd
Linc Energy Ltd
BBY Nominees Pty Ltd
Bell Potter Nominees Ltd
Directors and Officers
Non Executive Directors:
Mr Tim Tebeila (Chairman)
David Perkins (Deputy Chairman)
Dr Pius Kasolo
Ben Mphahlele
Kobus Terblanche
Officers:
Mr David Knox CEO
Mr Jerry Monzu Company Secretary
Contact:
Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (08) 9287 4600
Web: www.firestoneenergy.com.au
07 March 2012
Pretoria
Sponsor
River Group
Date: 07/03/2012 08:32:19 Produced by the JSE SENS Department.
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