firestone puts out deal vote to july

Wed, 23 May 2012 07:41


[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.

http://www.miningmx.com/news/energy/Firestone-puts-out-deal-vote-to-July.htm