[miningmx.com] — THE Industrial Development Corporation (IDC) has commenced funding the development of the Waterberg coal project by approving the first drawdown of the funding facility by Sekoko Resources for mine development costs, said project partner Firestone Energy on Thursday.
“This reflects the significant progress that has been achieved by the joint venture and is tangible evidence of the both the quality of the project and the confidence shared by the joint venture partners, which now includes the IDC,” Firestone said.
Firestone’s additional fund raising programme is aligned with the approval of mining rights. Firestone anticipates being in a position to provide further information in this area in the near term.
Firestone chairperson David Perkins said: “Sekoko and in particular Tim Tebeila is to be congratulated for his foresight and bringing IDC into the project. Working with Firestone’s executive director for finance, Sizwe Nkosi, Mr Tebeila has been the driving force in securing a solid foundation for the development of these strategic resources.
“IDC is now a confirmed strategic partner in the Waterberg project. The commencement of this funding represents the first step in our final phase of bringing our Waterberg coal project into production.”
SA-based black-owned energy and minerals company Sekoko Resources and Australian Stock Exchange-listed Firestone are developing the Waterberg coal joint venture project based on significant coal zone resources. Sekoko is aiming to commence operations in 2012, thus forming the basis for developing a global coal business.
Firestone Energy has entered the joint venture with Sekoko and has acquired the right to 60% participation interests in the Waterberg coal project, located in the Lephalale area of Limpopo.
The first stage of the project is to develop the Smitspan mine, which has a substantial measured thermal coal resource and to develop the Vetleegte mine, which is a substantial metallurgical coal deposit.
