[miningmx.com] — FIRESTONE Energy, the Australian resources company that plans to develop coal projects in South Africa, on Wednesday said Industrial Development Corporation (IDC) funding for its joint venture partner Sekoko Resources remained in place despite media reports to the contrary.
“Sekoko has today confirmed to Firestone that the IDC has not withdrawn its funding arrangement with Sekoko and that Sekoko is not aware of any actual or threatened action by the IDC to withdraw its funding arrangement,” Firestone said in a statement to the JSE.
This was after media reports that the state-owned development finance institution had withdrawn its funding.
Firestone and Seseko are jointly developing the Waterberg Coal project in the Limpopo Province, which is said to contain about 50% of South Africa’s remaining coal resources.
The companies announced late last month that they were exploring the possibility of streamlining the joint venture.
Firestone said it had received a proposal from Sekoko, which if implemented would more closely align the management and economic interests of the two organisations.
“Advantages outlined in the proposal include streamlining management, simplifying the joint venture structure and providing a more easily understood investment vehicle for both the equity and debt markets,” Firestone said.
The streamlining of the joint venture could be a precursor to the introduction of what the company calls a cornerstone investor.
Firestone’s shares gained 42.86% or 3 cents on the news and by noon were trading at 10 cents a share on the JSE.
