[miningmx.com] — JSE-listed Firestone Energy said it had issued 9.6% of its total share capital to Australia’s Linc Energy, raising R12.6m – funds that would be pumped into developing its Smitspan coal project.
“We welcome Linc Energy as a significant shareholder in Firestone and we look forward to working with Linc as the Firestone/Sekoko joint venture brings the Smitspan mine into production,’ said David Perkins, chairman of Firestone Energy.
In terms of the deal to sell shares, Linc Energy has also won rights to the underground coal gasification on tenements owned by Firestone and its joint venture partner, Sekoko Resources.
Said Peter Bond, CEO of Linc Energy: “This investment is a classic Linc Energy play whereby we as a company secure significant mineral resources in a potential area as a cornerstone to doing business in that location, yet gaining potential upside by smart buying of strategic mineral assets’.
Linc Energy bought 150 million Firestone Energy shares at 0.012 Australian cents per share.
