JOHANNESBURG (miningweekly.com) – Coal developer Firestone Energy on Monday announced that it had raised $5-million through the issue of convertible notes to advance the development of its Waterberg coal project, in Limpopo.
The funds, to be provided by Four Oaks Credit Fund, were proposed to be drawn down over two tranches of $2.7-million and $2.3-million respectively.
The first tranche convertible notes would be issued pursuant to the company’s current 15% capacity under ASX listing rules, with the second tranche’s notes to be issued subsequent to shareholder approval at the company’s annual general meeting on November 28.
Firestone noted that the face value of each convertible note, at R0.07, represented a 28% premium to the prior 20-day volume-weighted average price of the company’s securities on the ASX.
The maturity date of the convertible notes would be November 30, 2016.