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Market Update
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
FSE01 – ISIN: AU0000FSE02
(SA company registration number 2008/023973/10)
(“FSE” or “the Company”)
Market Update
Following the recent announcements made by Firestone Energy Limited (the Company) and The Waterberg Coal Company Limited (Waterberg Coal) (collectively the Waterberg Group) on 25 February 2016, the Company wishes to advise that it is in negotiations with Villora Limited (who is in the process of changing its name to AME International Limited (AME) to assist it in a recapitalisation of the Company’s balance sheet (the Third Party). This recapitalisation includes, inter alia, the provision of working capital and a potential transaction to acquire the secured convertible note (SCN) held by Standard Bank of South Africa Limited (SBSA) (and other participants) (the Noteholders) in Waterberg Coal (the Proposed Transaction).
Whilst the discussions with AME are progressing., AME is also in discussions with SBSA in respect of the Proposed Transaction. We are advised that, if AME is successful in their negotiations with SBSA, it would be their intention to convert the debt into ordinary equity in the capital of the Company. This would have a significantly positive effect on the Company’s balance sheet. Additionally, AME proposes to procure sufficient working capital to not only advance the Company’s project but also complete the recapitalisation of the Waterberg Group’s balance sheet. Whilst the Company is supportive of the Proposed Transaction, it cannot give any certainty on the completion nor the timing of the Proposed Transaction, as it requires the support of the Noteholders.
The Company also wishes to advise that it is currently in discussions with potential financiers concerning the arranging of suitable project finance for the prospective development of the Waterberg Coal project. The Company will keep the market advised of developments when terms of a financing mandate have been agreed and executed.
As part of the progression towards a project start up, the Company is in preliminary negotiations with various prospective coal offtaking parties and logistics operators for the evacuation of coal product to the Port of Richards Bay. These discussions are progressing well and as soon as negotiations have been finalised and agreements entered into, the market will be advised accordingly.
Whilst the aforementioned discussions are progressing, the Company has been in contact with the Noteholders with a view to gaining their support for the Proposed Transactions and also with respect to the provision of an interim working capital facility pending the completion of the potential transactions referred to above.
With a view to transitioning towards a potential project start up and implementation of the above, the Company wishes to advise the market of the following Board changes:
(a) Mr Mark Craddock has been appointed as a Director and as acting Chief Executive Officer. Mr Craddock has over 30 years’ experience in various operational and managerial roles in the Southern African coal industry from production to project delivery. He is also a past chairman of the Southern Africa Coal Processing Society.
(b) Mr Gavin Rodie has been appointed as a Non-Executive Director with immediate effect. Mr Rodie has an extensive background in the commercial and corporate banking sector and more recently he has diversified into property development and project management.
(c) Mr Stephen Miller has resigned as a Director and Chief Executive Office.
Dr Mathews Phosa
Chairman
Firestone Energy Limited
Rule 3.19A.1
Appendix 3X
Initial Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/9/2001.
Name of entity Firestone Energy Limited
ABN 71 058 436 794
We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.
Name of Director
Gavin A Rodie
Date of appointment
10 March 2016
Part 1 - Director’s relevant interests in securities of which the director is the registered holder
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
Number & class of securities
Nil
Part 2 – Director’s relevant interests in securities of which the director is not the registered holder
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Name of holder & nature of interest
Note: Provide details of the circumstances giving rise to the relevant interest.
N/A
Number & class of Securities
N/A
Part 3 – Director’s interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
Detail of contract
N/A
Nature of interest
N/A
Name of registered holder
(if issued securities)
N/A
No. and class of securities to which interest relates
N/A
Lodged with ASX on 11 March 2016
Appendix 3Z
Final Director’s Interest Notice
Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.
Introduced 30/9/2001.
Name of entity Firestone Energy limited
ABN 71 058 436 794
We (the entity) give ASX the following information under listing rule 3.19A.3 and as agent for the director for the purposes of section 205G of the Corporations Act.
Name of director
Stephen Miller
Date of last notice
17 June 2013
Date that director ceased to be director
10 march 2016
Part 1 – Director’s relevant interests in securities of which the director is the registered holder
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.
Number & class of securities
Nil
Part 2 – Director’s relevant interests in securities of which the director is not the registered holder
Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.
In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust
Name of holder & nature of interest
Note: Provide details of the circumstances giving rise to the relevant interest
N/A
Number & class of securities
Nil
Part 3 – Director’s interests in contracts
Detail of contract
Nature of interest
Name of registered holder
(if issued securities)
No. and class of securities to which interest relates
Lodged with ASX on 11 March 2016
10
Date: 11/03/2016 12:44:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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