Linc buys stake in Firestone Energy

Company News

Shares in Firestone Energy Limited  (ASX:FSE) jumped more than 13 per cent this morning after Linc Energy Limited (ASX:LNC) said it had bought a 9.6 per cent stake in the junior explorer. 

The interest has been secured through a placement of shares at 1.2 cents per cent, raising $1.8 million for Firestone.

Linc says Firestone will use the funds for working capital and to develop its Smitspan thermal coal project in South Africa. 

The stake will give Linc exposure to oil, gas and underground coal gasification in Africa.

CEO Peter Bond says the investment marks the company’s most significant foray into the growing energy hungry continent.

Shares in Linc Energy were trading 3.33 per cent lower this morning at $2.03.

In the first half of the 2011 financial year Linc Energy recorded a net profit of $327.6 million.


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