JSE-listed Australian exploration company Firestone Energy said yesterday it aimed to raise up to A$10m through a share purchase plan so that it will still be able to order long lead construction items for its Waterberg Coal project.

The company was detailing its projects in its quarterly activities report for the period to March 31.

The Waterberg Coal project is a joint venture with empowerment company Sekoko Resources. Firestone owns a 60% stake and Sekoko the other 40%.

In terms of the share purchase plan , Firestone will offer shares at A$0,02 and will receive an attaching free option for every two shares subscribed to.

Each option will have a strike price of A$0,04 and will expire on May 31 2014.

Chairman David Perkins said that the company had begun to order long lead engineering items to bring the project into production. "This share purchase plan gives our 6800 shareholders the opportunity to participate in the company’s rapid development programme," he said.

The company had appointed wash plant, rail and infrastructure contractors for the project.

All contracts addressed the requirements of its offtake agreement with Eskom and were subject to full funding being confirmed, Firestone said.