Arizona has agreed to procure project funding worth $400m for the development of the Waterberg coal joint venture, between South-Africa’s Sekoko Resources and Firestone.
Firestone Energy chairman Tim Tebeila said these transactions represent a significant step in the company’s development of the Waterberg Coal Project.
"The financial backing provided by Ariona will allow us to proceed with developing the project to completion," added Tim.
"This is an exciting time for the Company and we very much welcome Ariona’s involvement in the Project and as a substantial shareholder of Firestone Energy."
As part of another deal, Firestone’s major shareholder Sekoko Resources will sell 800 million shares in the former to Ariona, for a 25.7% of stake.
The deal would reduce Sekoko’s current shareholding in Firestone from 27.4% to 1.7%.
Ariona will also acquire a 10% interest in the Waterberg Joint Venture from Sekoko for an additional A$13m, reducing Sekoko’s direct interest in the project by 10% to 30%.
The deals are subject to regulatory and shareholder approval.
