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Financial Restructure Update
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") About Firestone Energy
Firestone Energy Limited is an
independent, Australian exploration and
development company listed on the
18 December 2012
Australian Stock Exchange Ltd (ASX) and
the Johannesburg Stock Exchange (JSE).
Firestone Energy has entered into a Joint
Financial Restructure – revised Venture with Sekoko Resources (Pty) Ltd
through which Firestone Energy has
Investment Agreement acquired the right to 60% participation
interests in the Waterberg Coal Project
located in Lephalale area, Limpopo Province,
South Africa.
The Board of Firestone Energy Limited (ASX/JSE: FSE) (the “Company” or
The first stage of the project is to develop the
“Firestone”) is pleased to update shareholders with the progress of the financial
Smitspan mine which has a substantial
restructuring and the Investment Agreement that it has executed with Ariona
measured thermal coal resource and to
Company SA (“Ariona”). develop the Vetleegte mine which is a
substantial metallurgical coal deposit.
As previously announced to the market on 19 November 2012, Firestone entered
into a termsheet to effect a variation to the Investment Agreement to reflect Firestone Energy is committed to becoming a
changed settlement terms. The changes agreed in the termsheet were subject to profitable independent coal and energy
a number of conditions the principal ones being: producer at its projects in South Africa,
thereby making a substantial contribution to
the social and economic development of the
• a review to ensure that it is compliant with the shareholder approvals
Lephalale area and South Africa.
received at a General Meeting of the Firestone held on 5 October 2012;
and Corporate Details
• execution of a formal deed of variation. ASX: FSE
JSE: FSE
The Directors are pleased to announce that the above conditions have now been Issued Capital:
3,114 million ordinary shares
satisfied with a formal deed of variation having been executed by the parties.
Major Shareholders:
During the course of preparation of the formal deed of variation, further changes Sekoko Resources (Pty) Ltd
Linc Energy Ltd
to those referred to in the Company's announcement of 19 November 2012 were BBY Nominees Pty Ltd
made to the Investment Agreement, which can be summarised as follows; Bell Potter Nominees Ltd
Directors and Officers
• First Stage of settlement is now to occur on 21 December 2012 provided
that if Ariona is unable to provide the A$4 million of additional cash on Non Executive Directors:
Mr Tim Tebeila (Chairman)
that day then First Stage will be postponed until at the latest 31 January David Perkins (Deputy Chairman)
2013. If the First Stage settlement does not occur by 5 January 2013 then Dr Pius Kasolo
Ariona is to lend Firestone a further $600,000 of interim funding. Ben Mphahlele
Kobus Terblanche
• The additional $600,000 in interim funding is part of the total $39.645 Officers:
Mr David Knox CEO
million in funding to be provided by Ariona. If settlement does not occur Ms Amanda Matthee CFO
then the $600,000 will be dealt with in the same way as the $1 million Mr Jerry Monzu Company Secretary
working capital facility currently made available by Ariona, further details
of which are set out below. Contact:
Suite B9, 431 Roberts Road
• Second Stage settlement is to occur within 5 business days of First Stage Subiaco, Western Australia 6008
Tel: +61 (08) 9287 4600
settlement but in any event by no later than 28 February 2013. Web: www.firestoneenergy.com.au
The $1 million working capital facility provided by Ariona is a loan to Firestone on an interest free and
unsecured basis until the First Stage settlement occurs. In the event that the First Stage settlement
does not occur then the amount of working capital loaned will convert into equity at the prevailing
market price on the date of conversion. Upon completion of the First Stage settlement process the full
amount of working capital that has been drawn down will roll into the new Convertible Notes.
The postponement of First Stage and or Second Stage settlement until after 5 January 2013 is subject
to the ASX granting a modification to a waiver of Listing Rule 7.3.2, previously granted to the Company
to allow for the issue of Convertible Notes after 5 January 2013.
Either party can terminate the Investment Agreement if First Stage settlement does not occur by 31
January 2013 or Second Stage settlement by 28 February 2013.
Yours sincerely,
David Knox
Chief Executive Officer
www.firestoneenergy.com.au
Tel: Australia (+61 08 9287 4600)
South Africa (+27 11 706 3548)
JOHANNESBURG
18 DECEMBER 2012
SPONSOR
RIVER GROUP
2
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