[miningmx.com] – FIRESTONE Energy, the JSE- and Australian-listed coal
exploration firm, said a shareholder meeting to vote on proposed changes to its
shareholding, and a financing package, had been put out to July from June.
“Given the complexity of the transaction and the fact that the transaction requires
multi jurisdictional approval, further time is required to finalise the long form
agreements,” the company said in a statement to the JSE.
On May 7, Firestone Energy said that a consortium of institutional and private
investors, known as Ariona Company, had agreed to recapitalise Firestone with a
A$30.7m convertible note facility which would redeem Firestone’s existing A$21.3m
facility, and provide a further A$6.6m going towards working capital.
In a second deal, Ariona would buy a 25.7% stake in Firestone from Sekoko for A$8m,
leaving Sekoko with a 1.7% interest. Ariona would also acquire 10% of Sekoko’s
direct interest in the Waterberg JV for A$13m.
The third and most significant deal, however, is Ariona’s undertaking to procure
project funding for the development of the project for up to $400m. This would include
Sekoko’s funding obligations on a “deferred carry’ basis where Sekoko would only pay
back its equity obligation once the project becomes operational.
“To date the Company has made significant progress on the documentation of this
transaction,” Firestone Energy said today. “The company will up-date the market as
soon as the long form agreements are finalised,” it said.
