ASX-listed Firestone Energy has revealed that following previous announcements that it was in negotiations regarding setting a revised date for second stage completion to occur under the terms of the restated investment agreement with Ariona SA, BBY Nominees and Jaguar Funds Management, the negotiations failed to resolve a revised date for second stage completion, which had been expected to occur on 28 March 2013.
The company also advised that as a result, the restated investment agreement has terminated.
Firestone Energy saiys that nevertheless, it is continuing discussions with the parties concerning alternative arrangements as well as considering alternative funding from other sources.
The company expects to be able to update the market on the outcome of those negotiations by mid April 2013 and has requested to remain in voluntary suspension until that time.
Meanwhile, Firestone Energy asserted that it retains the use of the share purchase agreement signed on 26 April 2012 between the company and BBY Nominees and this AU$2.2million facility may be drawn down upon to meet the companys short term funding needs.
Firestone Energy is an exploration and development company that has entered into a Joint Venture with Sekoko Resources through which Firestone Energy has acquired the right to 60% participation interests in the Waterberg coal project, in Lephalale, Limpopo.