JOHANNESBURG (miningweekly.com) – Coal developer Firestone Energy has received the first tranche of a $5-million convertible note funding.
In November, Firestone announced the multimillion-dollar 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 to be drawn down over two tranches of $2.7-million and $2.3-million, respectively.
Firestone said in a statement that it received A$3.13-million in cleared funds – net the proceeds after costs of the first tranche of the financing deal.
Over 475-million convertible notes, representing a face value of A$0.007 apiece and convertible into one fully paid ordinary share, would be issued to Four Oaks in exchange for the first tranche.
The convertible notes would mature in November 2016.