[miningmx.com] – FIRESTONE Energy has concluded a deal to refinance
its balance sheet; an outcome that will help smooth development of its Waterberg
Coal Project located in South Africa’s Limpopo province.
The JSE and Australian-listed coal development company announced today it had
agreed terms with Ariona Company, a private and institutional investment company,
which will buy A$40.7m in convertible notes, replacing an existing convertible note
structure.
The consideration for the finance is A$10m more than originally planned. The notes
carry a couple rate of 8% over a four-year period and convert into Firestone Energy
shares at 25 Australian cents per share.
In terms of the agreement with Ariona, which will also be entitled to appoint three
representatives to Firestone Energy’s board, Ariona will also undertake to arrange
project finance totaling US$400m for the Waterberg Coal Project.
The convertible note structure is considered enough to finance Firestone Energy up
to the completion of a bankable feasibility study on its project.
Said David Knox, Firestone Energy CEO: “This transaction marks a significant event
in the development of both the company and the Waterberg Project.’
Ariona will become the largest single shareholder in Firestone Energy as a result of
the finance package, with a stake of 25.69%. As a result of the change in
shareholding, the finance requires shareholder approval, Firestone Energy said.
