Firestone Energy, Australian mining exploration company, supported its planned acquisition of a stake in two South African coal projects, near Exxaro’s Grootegeluk mine, it said on Thursday.

The company planned to buy the Vetleleegte and Olieboomsfontein coal projects by acquiring Checkered Flag Investments, which has the rights to earn the stakes under a joint-venture agreement with Limpopo-based Sekoko Resources.

The Vetleleegte project had a Jorc-compliant inferred resource of 508-million tons.

The transaction was initially announced in mid-June and Firestone director Malcom Smartt said the only remaining conditions to be met were the South African Reserve Bank approval and the dual listing on the JSE.

The company would then appoint Sekoko’s chairperson, Tim Tebelia, and its finance director, Amanda Matthee, to its board.

“The projects will advance to a bankable feasibility study enabling the establishment of a future commercial mining operation in South Africa.”

Sekoko has already started drilling at the Vetleleegte property and have scheduled drilling to start at Olieboomsfontein in October.

“Sekoko Coal’s Waterberg reserves will be able to supply the domestic and export thermal energy, coking and metallurgical markets over the next 40 years,” Smartt said.

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