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Firestone seeks cornerstone investor

Core drilling
in the Waterberg
Perth, Australia — MININGREVIEW.COM — 30 April 2010 – Firestone Energy Limited “’ a Perth-based exploration and development company listed on the Australian and Johannesburg stock exchanges “’ has announced that it is seeking a cornerstone investor to develop its Waterberg projects in the Limpopo province of South Africa.

The company confirmed in a statement released here that securing a partner to develop the projects would be the best mechanism to increase shareholder value at this stage. It had now embarked on a process to invite selected companies to submit proposals to become a cornerstone investor.

Firestone revealed that it had appointed Australia-focused stockbroking, corporate advisory and asset management company BBY as its corporate adviser. It pointed out that BBY had a strong track record of securing funding and cornerstone investors for Australian and international resource companies.

Exploration work and a prefeasibility study have indicated that Firestone Energy could produce 5.5 Mtpa of coal from the phase-one area of its Waterberg coal project from 2011 onwards.

Releasing its results for the six months ended 31 December 2009, the company noted that it had remained on track to start mining operations by the end of this year, with the ramp-up to be determined by off-take agreements.

Firestone has three joint ventures with South African black economic-empowerment partner Sekoko Resources.