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FIRESTONE ENERGY LIMITED - Firestone Maintains Shareholders Reject RNGs Second Supplementary Bid

Release Date: 08/04/2013 08:47
Code(s): FSE FSEO1     PDF:  
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Firestone Maintains Shareholders  Reject RNG’s Second Supplementary Bid

                                                                                                About Firestone Energy

                                                                                                Firestone Energy Limited is an
         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")

                                                                                                independent, Australian exploration and
                                                                                                development company listed on the
                                                                                                Australian Stock Exchange Ltd (ASX) and
                 Firestone Maintains Shareholders Reject RNG’s Second                           the Johannesburg Stock Exchange (JSE).
                                                                                                Firestone Energy has entered into a Joint
                                  Supplementary Bid                                             Venture with Sekoko Resources (Pty) Ltd
                                                                                                through which Firestone Energy has
                                                                                                acquired the right to 60% participation
          Firestone Energy Limited (ASX/JSE: FSE) (the “Company” or “Firestone”) reaffirms      interests in the Waterberg Coal Project
          its advice to shareholders to REJECT the offer by Range River Gold Limited (ASX:      located in Lephalale area, Limpopo Province,
          RNG)(“Range River” or “RNG”) for the acquisition of all ordinary shares in            South Africa.
          Firestone (in consideration of 1.25 Range River share for every 2 Firestone shares)
                                                                                                The first stage of the project is to develop the
          following the receipt of RNG’s Second Supplementary Bidder’s Statement on 27
                                                                                                Smitspan mine which has a substantial
          March 2013 (“Offer”).                                                                 measured thermal coal resource and to
                                                                                                develop the Vetleegte mine which is a
          The Company will ask its independent expert to opine on the second                    substantial metallurgical coal deposit.
          supplementary bid. The board expects that this view will be received within a
          week and will advise shareholders accordingly.                                        Firestone Energy is committed to becoming a
                                                                                                profitable independent coal and energy
          In the interim the board of Firestone recommends that shareholders REJECT the         producer at its projects in South Africa,
                                                                                                thereby making a substantial contribution to
          Offer on the grounds that it remains inadequate and opportunistic. Whilst the
                                                                                                the social and economic development of the
          Offer has been increased by RNG, it remains inadequate for the following reasons:     Lephalale area and South Africa.

                      RNG’s Offer is a scrip bid which is an inadequate form of                 Corporate Details
             1        consideration                                                                                                  ASX: FSE
                                                                                                                                     JSE: FSE

                      The Offer does NOT compensate Firestone's Shareholders for                                                Issued Capital:
             2        the strategic nature and the inherent value of Firestone’s                                 3,549 million ordinary shares
                      assets                                                                                             Major Shareholders:
                                                                                                                  Sekoko Resources (Pty) Ltd
                                                                                                                              Linc Energy Ltd
                      RNG is paying a significantly higher price to acquire its                                       BBY Nominees Pty Ltd
             3        interest in FSE and FSE’s assets from Sekoko                                                  Bell Potter Nominees Ltd

                                                                                                                      Directors and Officers
                      The Offer will dilute existing FSE shareholders in their
             4        effective ownership of the assets of Firestone
                                                                                                                  Non Executive Directors:
                                                                                                                  Mr Tim Tebeila (Chairman)
                                                                                                            David Perkins (Deputy Chairman)
                      The FSE Board believes that the FSE share price will re-rate                                            Dr Pius Kasolo
             5        over the longer term as FSE moves closer to production                                                 Ben Mphahlele
                                                                                                                           Kobus Terblanche
                                                                                                                                 Oren Zohar
                                                                                                                                 Jack James

                                                                                                                                 Officers:
                                                                                                                       Mr David Knox CEO
                                                                                                                   Ms Amanda Matthee CFO
                                                                                                         Mr Jerry Monzu Company Secretary


                                                                                                                                     Contact:
                                                                                                                 Suite B9, 431 Roberts Road
                                                                                                             Subiaco, Western Australia 6008
                                                                                                                     Tel: +61 (08) 9287 460
                      RNG's Offer has been timed opportunistically to:
                      (i)    coincide with the settlement of the Ariona transaction, designed to
             6               destabilise and distract FSE; and
                      (ii)   transfer the value in Firestone to Range River at a time just prior to
                             Firestone achieving critical milestone events

             7        RNG’s Offer may have adverse taxation implications for FSE Shareholders



          The second supplementary bidders statement received from RNG has addressed a few of the reasons
          above being the proposed listing on the JSE AltX secondary board, removal of conditions and
          increasing value to shareholders by revising the consideration amount to be 1.25 pre-consolidation
          RNG shares for every 2 FSE shares. The consideration however remains in RNG shares, which the
          Firestone Board believes is inadequate. Furthermore, FSE believes that the JSE provides better access
          to capital, more corporate credibility and better liquidity for shareholders than being listed on the AltX.

          The Firestone Board reaffirms its recommendation that FSE shareholders REJECT the Offer.
          Shareholders should do nothing in relation to any documents received from RNG.

          All Firestone announcements are available on the Company’s website on www.firestoneenergy.com.au
          and via www.asx.com.au.

          Shareholders can also receive further information on the Offer by calling the Firestone shareholder
          information line on: 1800 643 977 or for international calls +61 2 8256 3363.

          Yours sincerely,



          David Knox
          Chief Executive Officer
          www.firestoneenergy.com.au
          Tel: Australia (+61 08 9287 4600)
               South Africa (+27 11 706 3548)




                                                                                                              
         8 April 2013
         Johannesburg

         Sponsor
         River Group

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