| Mon 30 Apr 2012, 9:15 | | FSE - Firestone Energy Limited - Quarterly Activities Report for the Period |
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FSE
FSE
FSE - Firestone Energy Limited - Quarterly Activities Report for the Period
to 31 March 2012
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")
Quarterly Activities Report for the Period to 31 March 2012
The Board of Firestone Energy Limited (ASX/JSE: FSE) ("Firestone" or the
"Company") is pleased to provide shareholders with its Quarterly Activities
Report for the 3 month period ended 31 March 2012.
Highlights
* Sekoko Coal signs an MoU for a coal supply agreement with Eskom
Holdings Limited;
* AUD $2.2M Finance Facility negotiated; and
* Technical and environmental work on track.
Overview
Firestone`s South African Black-owned partner, Sekoko Coal (Pty) Ltd, 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
Eskom power stations in the Mpumalanga Province.
Both parties have agreed that, upon compliance 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 / 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
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 (5) years to
10mt/pa.
On the 7 March 2012, the Company received an offer from the Tata Power
Compnay Limited to invest in the Firestone and Sekoko joint venture,
valuing 100% of the JV`s Waterberg Coal Project at approximately AUD $130
million. Following consideration of the offer, the Board of Firestone
decided to reject the offer on the basis that it materially undervalues the
inherent value that has been built up in the project to date.
Finance Facility
In March the Company secured a AUD$2.2M short term finance facility to
provide working capital to the Company for general corporate purposes.
In addition, the Company is considering further funding initiatives to
finance it`s share of the Joint-Venture expenses in relation to completing
a Definitive Feasibility Study as required in the terms and conditions of
the Eskom MoU.
Corporate
In January 2012, Mr Colin McIntyre, resigned from Firestone as independent
Non-Executive Director. To date the Company has not replaced this position.
Outlook
The management of the joint venture continue to work closely and are
focused on unlocking the value in the Waterberg Joint Venture Project. The
Company is increasingly being recognised in the marketplace and within the
industry on its activities and achievements.
FOR FURTHER INFORMATION:
David Knox
CEO
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 Ltd
Bell Potter Nominees Ltd
Directors and Officers
Non Executive Directors:
Tim Tebeila (Chairman)
David Perkins (Deputy Chairman)
Dr Pius Kasolo
Mr Ben Mphahlele
Mr Kobus Terblanche
Officers:
Mr David Knox CEO
Mr Jerry Monzu Company Secretary
Contact:
Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (0)8 9287 4600
Web: www.firestoneenergy.com.au
30 April 2012
Pretoria
Sponsor
River Group
Date: 30/04/2012 09:15:17 Produced by the JSE SENS Department.
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