FIRESTONE ENERGY LIMITED - Firestone Raises USD5,000,000 by Convertible Notes Issue

Firestone Raises USD5,000,000 by Convertible Notes Issue

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")

10 November 2014

FIRESTONE RAISES USD5,000,000 BY CONVERTIBLE NOTES ISSUE

Firestone Energy Limited (Firestone or the Company) advises that it has signed a term sheet with Four 
Oaks Credit Fund Limited for the provision of USD5.0 million in new funding by way of the issue of 
Convertible Notes (CN), each with a current face value of ZAR0.07 (seven South African cents).

Completion of the transaction is subject to execution of formal documentation and completion of due 
diligence by Four Oaks Credit Fund Limited.

The funds are proposed to be drawn down over two tranches comprising USD2.7 million and USD2.3 
million respectively.  The Tranche 1 CN will be issued pursuant to the Company's current 15% capacity 
under ASX Listing Rule 7.1 with Tranche 2 to be issued subsequent to shareholder approval at the 
Company's AGM to be held on 28 November 2014.

Funds raised are to be used for advancing Firestone's Waterberg Coal Project Joint Venture located in 
the Waterberg district of Limpopo Province, South Africa and for other working capital purposes.

The salient terms of the issue of the Convertible Notes are as follows:
1.Principal amount is USD5,000,000;
2.Drawing over 2 Tranches, as above;
3.Face value of each note is ZAR0.07;
4.Redemption to be in equivalent USD;
5.Coupon interest rate is 6% p.a.;
6.PIK interest rate is 6% p.a.; and
7.Maturity date is 30 November 2016.

The face value of each note represents a 28% premium to the prior 20 day VWAP of Firestone's 
securities on the ASX.  

The Company is pleased to have the support of Four Oaks Credit Fund Limited to enable it to progress 
the Company's Waterberg Coal Project Joint Venture.
Shareholders are advised to continue to exercise caution as discussions relating to further funding are 
ongoing.

Stephen Miller
Managing Director


Corporate Details

Registered office:
Level 2, 1 Walker Avenue West Perth, Western Australia 6005
Australia

Tel:+61 8 9485 0888
Fax: +61 8 9485 0077

South African office:
Level 1, The Place, 
1 Sandton Dr, Sandton, 2146, South Africa

Tel: +27 10 594 2240
Fax: +27 10 594 2253

Contacts:
Mr Stephen Miller
Managing Director

Investor relations
in South Africa:
Bruce Tinney
+27 (83) 408 3028

E-mail:
info@waterbergcoal.net

Major Shareholder:
The Waterberg Coal Company Ltd

Directors and Officers:

Non Executive Directors:
Dr Mathews Phosa (Chairman)
George Oupa Magashula
Edwin Leith Boyd

Officers:
Mr Stephen Miller Managing Director
Ms Amanda Matthee CFO
Mr Edwin Leith Boyd Company Secretary

Web: www.firestoneenergy.com.au

Johannesburg
10 November 2014

Sponsor

River Group






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