JOHANNESBURG (miningweekly.com) – ASX-listed Range River Gold, which is driving a hostile takeover bid for JSE-listed Firestone Energy, on Wednesday announced that it had successfully drawn down A$35-million under its convertible facility agreement with Standard Bank.
Range River and its now 100%-owned subsidiary, Ariona Company, used a portion of the funds to acquire a 10% interest in the Waterberg Coal project from Firestone’s black economic-empowerment partner Sekoko Resources, as well as to acquire 480-million shares in Firestone from Sekoko.
Firestone has fought against the proposed takeover by Range River since December last year, and has called the deal “inadequate and opportunistic”.
The South African coal miner struggled in recent weeks to conclude an investment agreement with Ariona Company and announced last week that its restated investment agreement with Ariona, BBY Nominees and Jaguar Funds Management had been terminated after negotiations to resolve a revised date for second-stage completion under the terms of the agreement had failed.
Range River’s acquisition of Ariona Company and securing the A$35-million in funding from Standard Bank had formed part of the various conditions standing in the way of the Firestone takeover.
The ASX-listed company, which planned to change its name to the Waterberg Coal Company, said it was preparing a third supplementary bidder’s statement to update its shareholders, as well as Firestone’s shareholders, on these matters.