Johannesburg - Firestone, a South African coal producer, has asked the JSE and Australian Stock Exchange to allow it to continue to have its listing suspended as it has yet to sort out financing.
The company initially asked the bourses to halt trade in its shares on 17 March, noting its parent company - The Waterberg Coal Company - needed to wrap up financing. it said at the time it needed to replace existing finance arrangements.
This morning, Firestone told shareholders it wanted its suspension, granted on 9 March, extended. Its shares last traded at 6c.
The company said it needed time to wrap up a proposed third-party funding arrangement to replace its existing funding arrangement with Standard Bank, which was due for repayment on 9 April.
It said “the completion of discussions and documentation for the replacement funding represents a significant transaction and the final terms of the proposal will impact [Firestone’s] ability to carry out its future objectives”.
Firestone added allowing its shares to trade would be “materially prejudicial” to its parent company’s ability to wrap up the funding deal, which is crucial to both entities’ financial viability.
“Firestone Energy is committed to becoming a profitable independent coal and energy producer at its projects in South Africa.”
It noted the suspension will remain in place until it either secure the funding, or start of trade on 10 August.
Firestone is involved in a joint venture with Sekoko Resources that gives it the right to a 60% participation interest in the Waterberg Coal Project located in Lephalale area in Limpopo.
The first stage of the project is to develop the Smitspan mine which has a substantial measured thermal coal resource and to develop the Vetleegte mine which is a substantial metallurgical coal deposit.
Firestone made a net loss of AU$2.4 billion in the six months to December.
IOL