JOHANNESBURG (miningweekly.com) − ASX- and JSE-listed Firestone Energy on Friday welcomed a proposal from majority shareholder Sekoko Resources to more closely align the management and economic interests of the two organisations.

Should the proposal be implemented, the advantages would 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 its board would meet with representatives from Sekoko on December 2 to consider the proposal.

Should the board decide to recommend implementing the proposal, the approval of unassociated shareholders, and all necessary regulatory approvals, will be sought.

“Until the board has had the opportunity to fully consider the proposal, Firestone Energy has undertaken to Sekoko that it will not issue any new securities,” it said in a statement.

As an initial step it is intended to invite Sekoko executive chairperson Tim Tebeila to join Firestone’s board.

Firestone and Sekoko are developing a coal project in the Waterberg.
 

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