JOHANNESBURG (miningweekly.com) - JSE- and ASX-listed coal explorer Firestone Energy said on Wednesday that it was looking to secure a cornerstone investor to develop its Waterberg projects in South Africa's Limpopo province.

Firestone said in a statement that securing a partner to develop the projects would be the best mechanism to increase shareholder value at this stage.

The company had now embarked on a process to invite selected companies to submit proposals to become a cornerstone investor.

Australia-focused stockbroking, corporate advisory and asset management firm BBY had been appointed as the corporate adviser to Firestone.

The company said 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-million tons a year of coal from the phase-one area of its Waterberg coal project, from 2011 onwards.

With the release of its results for the six months ended December 31, 2009, the coal junior noted that it remained on track to start mining operations by the end of this year, with the ramp-up to be determined by offtake agreements.

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

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