| Mon 26 Mar 2012, 7:46 | | FSE - Firestone Energy Limited - Firestone Energy/Sekoko joint venture signs |
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FSE
FSE
FSE - Firestone Energy Limited - Firestone Energy/Sekoko joint venture signs
memorandum of understading for a 10 MTPA, minimum 30 year coal supply agreement
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")
FIRESTONE ENERGY/SEKOKO JOINT VENTURE SIGNS MEMORANDUM OF UNDERSTADING FOR A 10
MTPA, MINIMUM 30 YEAR COAL SUPPLY AGREEMENT
Firestone Energy Limited (ASX/JSE: "FSE") ("Firestone Energy" or the "Company")
is pleased to announce that its 60:40 Joint Venture with Sekoko Coal (Pty) Ltd,
its South African Black-owned partner, has signed a Memorandum of Understanding
for a Coal Supply Agreement with Africa`s largest power utility, Eskom Holdings
Limited, to supply thermal coal from its Waterberg Coal Project in the Lephalale
area, Limpopo, to two Eskom power stations in the Mpumalanga Province.
The key aspects of this Memorandum of Understanding, are that both parties have
agreed that consequent upon compliance / achievement of the terms and conditions
set out in the MOU, the parties will enter into a Coal Supply Agreement
containing enabling provisions for the Firestone Energy/Sekoko Joint Venture to
supply a minimum of 10Mt of thermal coal on a Free on Rail (FOR) basis annually
to Eskom`s two designated power stations in the Mpumalanga area by way of
production, acquisition or joint venture, for a minimum period of thirty (30)
years. The production of coal will commence in 2014 and will ramp up over a
period of five years to 10mtpa.
The Waterberg Coal Project comprises eight farms in the Waterberg coalfield
totalling some 7,979 hectares with a proven JORC resource of 1.8 billion tonnes.
The Project entails the construction of an opencast coal mine on the Smitspan
farm together with infrastructure linking the mine to the Transnet rail system
which is approximately 7 km from the proposed mine site.
Firestone Energy`s non-executive Chairman, Mr Timothy Tebeila said, "We are
delighted to have secured this agreement, which we regard as a key step toward
achieving Firestone Energy/Sekoko`s objectives of developing its coal assets in
South Africa and participating in the social and economic development of South
Africa."
For further information please contact:
David Perkins Jan Britz
Deputy Chairman CEO
Firestone Energy Limited Sekoko Coal Pty Ltd
+61 2 926 0131 +27 11 706 3542
Timothy Tebeila
Chairman
FIRESTONE ENERGY LIMITED
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.
August 2010 Venmyn Rand Report
Zone Measured Indicated Inferred Total GTIS
Farm Tonnage GTIS Coal GTIS Coal GTIS Coal
"1" Tonnage Tonnage Coal "2"
(mill (mill (mill
tonnes) tonnes) (mill (mill tonnes)
tonnes) tonnes)
Smitspan 1,881.758 238.668 475.844 - 714.512
Hooikraal 358.444 - 7.282 155.491 162.773
Minnasvlakte 755.805 - 26.507 230.687 257.194
Massenburg 337.034 - 20.797 109.539 130.336
Vetleegte 570.265 1.224 204.499 17.893 223.616
Swanepoelpan 1,239.974 - 1.072 378.227 379.299
Duikerfontein 30.200 - - 13.949 13.949
Total 5,173.480 239.892 736.001 905.786 1,881.679
"1`` Waterberg coal typically occurs interlaminated with shale which for
the most part cannot be mined separately from the coal and thus the
zone gross in-situ tonnage is the tonnage of coal and shale.
"2" In the interest of balanced reporting it is the Company`s intention to
also report the gross in-situ tonnage of coal rather than the tonnage
of coal and shale. In order to identify the gross in-situ tonnage of
coal in each zone, rather than the zone tonnage including the rock,
each zone tonnage was discounted by the percent yield at a relative
density of 1.9, in effect, removing the influence of the shale) to
derive an estimate of the coal tonnage.
Competent Persons Statement
Information in this announcement that relates to exploration results, coal
resources or reserves on the properties Smitspan 306LQ, Hooikraal 315LQ,
Minnasvlakte 258LQ, Massenburg 305LQ, Swanepoelpan 262LQ and Duikerfontein
263LQ is based on information compiled by Ms Catherine Telfer who is employed
by Venmyn Rand (Pty) Ltd and is a member of The Australasian Institute of
Mining and Metallurgy and the Geological Society of South Africa. Ms Telfer
has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which she is
undertaking to qualify as a Competent Person as defined in the 2004 Edition
of the "Australasian Code for the Reporting of Exploration Results, Mineral
Resources and Ore Reserves" (The JORC Code). Ms Telfer consents to the inclusion
in the announcement of the matters based on her information in the form and
context in which it appears.
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
Pretoria
26 March 2012
Sponsor
River Group
Date: 26/03/2012 07:46:01 Produced by the JSE SENS Department.
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