Perth-based Firestone Energy has received an all-scrip takeover proposal from the Brian McMaster-chaired Range River Gold, that values it at $24.9 million.
Range River will offer one of its shares for every two shares owned by Firestone, a 25 per cent premium on Firestone’s closing price on December 13 of $0.008 per share.
The deal remains subject to regulatory and shareholder approvals, as well as the successful acquisition by Range River of Ariona Company, its joint venture partner in the Waterberg coal project in South Africa.
Range River said it would also consider a proposal to change its name to Waterberg Coal Company.
“The proposed acquisition of Firestone is a company changing transaction for Range River and, upon successful completion, will position the company for significant growth in the future,” Range River chairman Brian McMaster said in a statement.
At close of trade today, Range River shares were up 5.5 per cent, trading at 1.9 cents, while Firestone’s stock was down 11.1 per cent, at $0.008.