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Major Shareholder Provides $3m Loan to FSE
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")
2 September 2013 About Firestone Energy
Firestone Energy Limited is an
independent, Australian exploration and
Major Shareholder Provides $3m Loan to FSE development company listed on the
Australian Stock Exchange Ltd (ASX) and
The Board of Firestone Energy Limited (ASX/JSE: FSE) (the “Company”, the Johannesburg Stock Exchange (JSE).
"FSE" or “Firestone”) advises that it has signed a loan agreement with its Firestone Energy has entered into a Joint
major shareholder, The Waterberg Coal Company Limited (“WCC”), to provide Venture with Sekoko Resources (Pty) Ltd
up to $3 million in funding to be used for the Company’s project financing through which Firestone Energy has
obligations in relation to the Waterberg Coal Project. acquired the right to 60% participation
interests in the Waterberg Coal Project
The material terms and conditions of the Loan Agreement are set out below: located in Lephalale area, Limpopo Province,
South Africa.
(a) (Loan): WCC grants a loan facility of up to $3,000,000 to FSE
(“Loan”) to be used towards project financing related expenses only; The first stage of the project is to develop the
Smitspan mine which has a substantial
(b) (Interest): no interest is payable on the Loan; measured thermal coal resource and to
develop the Vetleegte mine which is a
(c) (Security): the Loan is unsecured;
substantial metallurgical coal deposit.
(d) (Draw Date): the draw date is 31 August 2013, or such other date
agreed to by WCC and FSE; Firestone Energy is committed to becoming a
profitable independent coal and energy
(e) (Sekoko Loan): WCC agrees that any amounts payable to it under producer at its projects in South Africa,
this agreement will not be required until all amounts payable under thereby making a substantial contribution to
the shareholders agreement between FSE, Lexshell 126 General the social and economic development of the
Trading (Proprietary) Limited, Checkered Flag Investments 2 Lephalale area and South Africa.
Proprietary Limited, Sekoko Coal (Proprietary) Limited, Sekoko
Corporate Details
Resources (Proprietary) Limited and Richtrau No. 322 (Proprietary) ASX: FSE
Limited dated on or about 24 February 2011 (“Sekoko Loan”) are JSE: FSE
paid;
Issued Capital:
(f) (Repayment): FSE will repay the Loan to WCC within 10 days of FSE 3,549 million ordinary shares
making full payment of the Sekoko Loan; and Major Shareholders:
The Waterberg Coal Company Ltd
(g) (Default): If an event of default occurs (the events of default are usual Sekoko Resources (Pty) Ltd
for an agreement of this nature), and the Loan has not been repaid, Linc Energy Ltd
FSE must repay the Loan immediately. BBY Nominees Pty Ltd
Directors and Officers
FSE Chairman, Mr Tim Tebeila commented “that despite the volatility in the
share market, the board of FSE recognises the support by its largest Non Executive Directors:
shareholder in continuing to give support in helping to finalise the definitive Tim Tebeila (Chairman)
feasibility study on the proposed development of an opencast mining operation Dr Pius Kasolo
to produce 10 Million tonnes of coal (product) per annum to Eskom for an initial Ben Mphahlele
Brian McMaster
term of 30 years pursuant to the Memorandum of Understanding (“MOU”) that David Knox
the joint venture entered into with Eskom in March 2012 (as amended).
Officers:
Mr Stephen Miller CEO and Executive
Director
Yours sincerely Ms Amanda Matthee CFO
Mr David McEntaggart Company Secretary
Contact:
Stephen Miller Level1, 330 Churchill Avenue, Subiaco,
Chief Executive Officer Western Australia 6008
Tel: +61 (08) 9200 4465
www.firestoneenergy.com.au Fax:+61(08) 9200 4469
Web: www.firestoneenergy.com.au
02 September 2013
Johannesburg
Sponsor
River Group
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