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WCC seeks voluntary suspension extension

9th July 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Firestone Energy and its parent company ASX-listed Waterberg Coal Company (WCC) have requested an extension to the voluntary suspensions in the trading of their securities to allow time for WCC to finalise a proposed third-party funding arrangement to replace an existing funding facility with Standard Bank, which had been due for repayment on April 9.

The voluntary suspension had been in effect since March 19.

WCC stated that the completion of discussions and documentation for the replacement funding represented a significant transaction and that the final terms of the proposal would impact on its ability to carry out its future objectives.

“Reinstatement of trading for securities at this time is likely to be materially prejudicial to our ability to successfully complete the complex funding transaction contemplated, which is critical to the our financial viability,” it said in a statement.

Standard Bank advised that it would maintain the existing facility on an “on demand”, rolling daily basis, to allow further time for negotiations with the third party to progress.

WCC expected the voluntary suspension to remain in place until on or around August 10.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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