(MENAFN- ProactiveInvestors - Australia) Firestone Energy (ASX:FSE) has received an off market all share bid by Range River Gold (ASX:RNG) in a transaction that valued Firestone at A$24.9 million.
Under the offer, Range River will offer 1 share for every two shares owned by Firestone. The offer represented a 25% premium to Firestone's closing price on Thursday 13 December 2012 of $0.008 per share.
The Firestone offer is subject to regulatory, and shareholder approvals as well as a minimum acceptance condition of 50.1% by Firestone shareholders.
The deal is also subject to a successful acquisition by Range River of Ariona Company, which is party to agreements that will leave it with ownership of 800,000,000 shares in Firestone from Sekoko Coal. Range River has already made an offer for the Ariona Company.
Ariona has also agreed to acquire a further 10% direct interest in the Waterberg joint venture from Sekoko, which currently holds a 40% interest in the venture.
The Firestone offer and Ariona acquisition will, upon completion, give Range River a 70% working interest in the Waterberg Joint venture, which comprises eight titles in the Waterberg coal field totalling about 7,979 hectares.
Firestone holds 60% interest in the venture. Once the transaction is complete, the Waterberg JV will be considerably simpler and easier to operate and finance.
The JV is a strategically located and advanced thermal and coking coal project in South Africa and the acquisition of Firestone will help in bringing the project into production.
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