Wrap Text
First Stage Settlement Completed
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")
5 February 2013 About Firestone Energy
Firestone Energy Limited is an
independent, Australian exploration and
1st stage Settlement Occurs under the Financial Restructure development company listed on the
Australian Stock Exchange Ltd (ASX) and
The Board of Firestone Energy Limited (ASX/JSE: FSE) (the “Company” or the Johannesburg Stock Exchange (JSE).
“Firestone”) is pleased to advise that the first stage of Completion has occurred Firestone Energy has entered into a Joint
and that the Company has issued 27.145 million new secured convertible notes in Venture with Sekoko Resources (Pty) Ltd
accordance with the Restated Investment Agreement between the Company, through which Firestone Energy has
Ariona Company SA (Ariona), BBY Nominees Pty Ltd and Jaguar Funds acquired the right to 60% participation
interests in the Waterberg Coal Project
Management Limited. located in Lephalale area, Limpopo Province,
South Africa.
Under the First Completion, Firestone received $5million in cash (less reimbursed
costs). The $5 million comprised the additional $600,000 in interim funding The first stage of the project is to develop the
Firestone received as announced on 17 December 2012 and the drawdown from Smitspan mine which has a substantial
the original $1 million working capital facility, which was rolled into the new measured thermal coal resource and to
convertible notes. develop the Vetleegte mine which is a
substantial metallurgical coal deposit.
As a result Firestone has now issued $27.145 million of new convertible notes
Firestone Energy is committed to becoming a
(NCNs) to Ariona for;
profitable independent coal and energy
producer at its projects in South Africa,
• the injection of A$5 million of cash into Firestone, and thereby making a substantial contribution to
• the redemption and replacement of $21.3 million of Existing Convertible the social and economic development of the
Notes (ECNs) and accrued interest of $845,000. Lephalale area and South Africa.
Corporate Details
In addition the holders of the ECNs were issued 241,145,620 fully paid ordinary ASX: FSE
shares in the Company in satisfaction of the balance of the interest which had JSE: FSE
accrued on the ECNs.
Issued Capital:
3,114 million ordinary shares
In accordance with the approval of shareholders provided at the General Meeting
held on 5 October 2012, as a result of the redemption of the Existing Convertible Major Shareholders:
Sekoko Resources (Pty) Ltd
Notes, 300 million incentive options were issued to the former holders of the Linc Energy Ltd
ECNs. BBY Nominees Pty Ltd
Bell Potter Nominees Ltd
Under the Second Completion, Ariona will provide a further $12.5 million for Directors and Officers
NCNs which will be applied to additional working capital. Second Completion is
Non Executive Directors:
scheduled to occur by not later than 28 February 2013. Mr Tim Tebeila (Chairman)
David Perkins (Deputy Chairman)
Dr Pius Kasolo
Ben Mphahlele
In accordance with the Restated Investment Agreement, from conclusion of First Kobus Terblanche
Completion, Ariona nominated and Firestone appointed, three persons to the
Officers:
Board of Firestone, namely Mr David Hillier, Mr Oren Zohar and Mr Jack Robert Mr David Knox CEO
James. A brief bio for each of those directors is set out below: Ms Amanda Matthee CFO
Mr Jerry Monzu Company Secretary
Mr David Hillier
Contact:
Suite B9, 431 Roberts Road
David Hillier is a chartered accountant and has more than 30 years experience in Subiaco, Western Australia 6008
the resources industry globally. Mr Hillier was previously Executive Chairman of Tel: +61 (08) 9287 4600
Buka Gold Limited which successfully identified a number of gold anomalies in the Web: www.firestoneenergy.com.au
Maryborough Basin in Queensland, an area not previously considered prospective
for gold. Throughout 2008 he worked as Chief Financial Officer, and subsequently as an executive
director, of Buka's major shareholder based in London. Between 1989 and 2002, Mr Hillier held a
range of senior executive positions in the Normandy Mining Limited Group of companies and was
Chief Financial Officer of Normandy for six of these years. He has served as Chairman and as a director
of a number of public companies in the mining and exploration field. Mr Hillier is a currently Chairman
of Lawson Gold Limited and Non-Executive Director of Phoenix Copper Limited.
Mr Zohar
Mr Zohar holds a Bachelor of Commerce degree from UWA, and a Master of Business Administration
from Melbourne Business School. He is also a Chartered Accountant, registered and official liquidator.
Mr Zohar has practised in the areas of corporate restructuring and advisory for over 20 years. He was a
founding partner of KordaMentha (WA).
After retiring from KordaMentha in 2006, Mr Zohar co-founded a boutique corporate advisory and
private equity firm, which held an AFS Licence, provided specialist advisory services for clients and
sourced, negotiated and project managed several syndicated investment opportunities.
Mr Zohar has recently been appointed as Acting Managing Director of Frankland River Olive Company
Ltd and is also a Director of Black Star Petroleum Limited.
Mr Jack James
Mr James has a Bachelor of Business from the Queensland University of Technology and is a Chartered
Accountant.
Mr James provides accounting, secretarial and advisory advice to private and public companies,
government and other stakeholders. Mr James has over fifteen years' experience in chartered
accounting specialising in corporate advisory and reconstruction. Most recently, he held senior roles in
Ernst & Young and KordaMentha.
Mr James is currently a Director of Eumeralla Resources Limited and Black Star Petroleum Limited.
The Company has also used the opportunity of First Completion to repay $1,457,006 drawn down on a
finance facility provided by BBY by issuing 194,674,462 fully paid ordinary shares.
"The redemption of the existing notes, the injection of $5 million of cash and the repayment of the BBY
facility with shares ahead of a further $12.5 million due at the end of February, places the Company on
a firm financial footing" said Mr Knox. "Achieving First Completion is an important step in capitalising
the Company and funding the finalisation of the Bankable Feasibility Study for the Company's flagship
Waterberg Coal Joint Venture Project."
Yours sincerely,
David Knox
Chief Executive Officer
www.firestoneenergy.com.au
Tel: Australia (+61 08 9287 4600)
South Africa (+27 11 706 3548)
5 February 2013
Sponsor
River Group
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