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FIRESTONE ENERGY LIMITED - Termination of Restated Investment Agreement

Release Date: 02/04/2013 08:55
Code(s): FSE FSEO1     PDF:  
Wrap Text
Termination of Restated Investment Agreement

FIRESTONE ENERGY LIMITED                                                                          
(Incorporated in Australia)
(Registration number ABN 058 436 794) 
 Share code on the JSE Limited: FSE                                                                           About Firestone Energy
Share code on the ASX: FSE 
ISIN: AU000000FSE6                                                                          Firestone Energy Limited is an
(SA company registration number 2008/023973/10)  
 ("FSE" or "the Company")





                                                          independent, Australian exploration and
                                                                         development company listed on the
                                                                         Australian Stock Exchange Ltd (ASX) and
                                                                         the Johannesburg Stock Exchange (JSE).
             Termination of Restated Investment Agreement                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
Firestone Energy Limited (ASX/JSE:FSE) (“Firestone” or the
                                                                         located in Lephalale area, Limpopo Province,
“Company”) had previously announced that it was in negotiations          South Africa.
regarding setting a revised date for second stage completion to occur
under the terms of the Restated Investment Agreement with Ariona SA,     The first stage of the project is to develop the
                                                                         Smitspan mine which has a substantial
BBY Nominees Pty Ltd and Jaguar Funds Management Limited.
                                                                         measured thermal coal resource and to
                                                                         develop the Vetleegte mine which is a
The negotiations failed to resolve a revised date for second stage       substantial metallurgical coal deposit.
completion, which had been expected to occur on 28 March 2013. As a
result, the Restated Investment Agreement has terminated.                Firestone Energy is committed to becoming a
                                                                         profitable independent coal and energy
The Company is nevertheless continuing discussions with the parties      producer at its projects in South Africa,
concerning alternative arrangements as well as considering alternative   thereby making a substantial contribution to
funding from other sources. The Company expects to be able to update     the social and economic development of the
the market on the outcome of those negotiations by mid April 2013 and    Lephalale area and South Africa.
has requested to remain in voluntary suspension until that time. The     Corporate Details
Company will update the market once those negotiations are concluded.                                         ASX: FSE
                                                                                                              JSE: FSE
Firestone retains the use of the Share Purchase Agreement signed on                                      Issued Capital:
26 April 2012 between the Company and BBY Nominees Pty Ltd and                            3,549 million ordinary shares
this A$2.2million facility may be drawn down upon to meet the
                                                                                                  Major Shareholders:
Company’s short term funding needs.                                                        Sekoko Resources (Pty) Ltd
                                                                                                       Linc Energy Ltd
Yours sincerely,                                                                               BBY Nominees Pty Ltd
                                                                                             Bell Potter Nominees Ltd

                                                                                               Directors and Officers

                                                                                           Non Executive Directors:
David Knox                                                                                 Mr Tim Tebeila (Chairman)
Chief Executive Officer                                                              David Perkins (Deputy Chairman)
www.firestoneenergy.com.au                                                                             Dr Pius Kasolo
                                                                                                      Ben Mphahlele
Tel: Australia (+61 08 9287 4600)
                                                                                                    Kobus Terblanche
     South Africa (+27 11 706 3548)                                                                       Oren Zohar
                                                                                                          Jack James

2 April 2013                                                                                  Officers:
Johannesburg                                                                                Mr David Knox CEO
                                                                                            Ms Amanda Matthee CFO
Sponsor                                                                                  Mr Jerry Monzu Company Secretary
River Group

                                                                                                              Contact:
                                                                                          Suite B9, 431 Roberts Road
                                                                                      Subiaco, Western Australia 6008
                                                                                              Tel: +61 (08) 9287 4600

Date: 02/04/2013 08:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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