Linc Energy has taken its stake in Perth-based Firestone Energy to 9.6 per cent, in a share placement deal worth $1.8 million.
Linc purchased 150 million Firestone shares at 12 cents per share, under Firestone’s 15 per cent capacity.
Firestone said it would use the funds to advance its flagship project, the Waterberg coal project in South Africa, which it is developing with its joint venture partner Sekoko Resources.
As part of the placement, Firestone has granted Linc its underground coal gasification, oil and gas rights over the tenements that are subject of the joint venture between Firestone and Sekoko.
“This investment by Linc marks our mopst significant foray into the growing, energy hungry African continent,” Linc chief executive Peter Bond said.
“We believe this investment will be value accretive for Linc shareholders as the Firestone/Sekoko JV owns billions of tonnes of coal, ranging from higher value metallurgical coal, thermal coal for power generation through to coal which appears suiotable for Linc’s underground and above ground gasification processes.”
Firestone chairman David Perkins welcomed Linc’s investment and said he looked forward to working with the company as it brings the Smitspan mine at Waterberg into production.
