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FSE - Firestone Energy Limited - IDC commences funding of the Sekoko

Release Date: 21/07/2011 08:59
Code(s): FSE
Wrap Text

FSE - Firestone Energy Limited - IDC commences funding of the Sekoko resources/Firestone Waterberg Coal Project 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") IDC COMMENCES FUNDING OF THE SEKOKO RESOURCES/FIRESTONE WATERBERG COAL PROJECT Firestone Energy Limited "Firestone" (ASX/JSE: FSE) has been informed by its joint venture partner, Sekoko Resources, in the Waterberg Coal Project (the Project), that the IDC (Industrial Development Corporation of South Africa) has commenced funding the development of the Project by approving the first drawdown of the funding facility by Sekoko for mine development costs, in accordance with the announcement released to the market on 17 December 2010. This reflects the significant progress which has been achieved by the Joint Venture and is tangible evidence of the both the quality of the Project and the confidence shared by the joint venture partners, which now includes IDC. Firestone`s additional fund raising program is aligned with the approval of Mining Rights. Firestone anticipates being in a position to provide further information in this area in the near term. The Chairman, Mr David Perkins, said "Sekoko and in particular Tim Tebeila is to be congratulated for his foresight and bringing IDC into the Project. Working with Firestone`s Executive Director Finance, Sizwe Nkosi, Mr Tebeila has been the driving force in securing a solid foundation for the development of these strategic resources. IDC is now a confirmed strategic partner in the Waterberg Project. The commencement of this funding represents the first step in our final phase of bringing our Waterberg Coal Project into production". Firestone Energy Limited David Perkins Chairman 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. Sekoko is targeting to commence operations in 2012, thus forming the basis for developing a global coal business. About Industrial Development Corporation of South Africa "IDC" IDC is a self financing, state owned, developmental financial institution which was established in 1940. The IDC has approved funding deals in excess of ZAR9billion (approx A$1.3 billion) in 2010 and has invested over ZAR6billion (approx A$857million) in mining and energy related projects over the last two years. The IDC is a significant shareholder in Sasol Limited, Mittal Steel South Africa, Exxaro and Foskor. IDC has funded numerous successful green-field and brown-field projects over the past 70 years. 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: 2,793 million ordinary shares Major Shareholders: Sekoko Resources (Pty) Ltd BBY Nominees Ltd Colbern Fiduciary Nominees Ltd Bell Potter Nominees Ltd Directors and Officers Non Executive Directors: David Perkins (Chairman) Dr Pius Kasolo Colin McIntyre Executive Directors: Sizwe Nkosi Company Secretary: Jerry Monzu Contact: Suite B9, 431 Roberts Road Subiaco, Western Australia 6008 Tel: +61 (0)8 9287 4600 Web: www.firestoneenergy.com.au Pretoria 21 July Sponsor River Group Date: 21/07/2011 08:59:44 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). 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