The capital raising comes from the issue of convertible notes with a conversion price of 4c per share.

BBY underwrote the equity raising and the transaction is expected to be settled this week.

Firestone shareholders have also approved a second joint venture agreement with South Africa’s Sekoko Coal for another four properties.

The acreage has a combined in situ, JORC-compliant, indicated and inferred resource of 2.9 billion tonnes, estimated to result in about 1.12Bt of saleable coal after washing.

The terms of the deal have Firestone paying Sekoko about $5.1 million and issuing some $43 million worth of shares to the South African company at 5c per share.

Sekoko will also receive another $7.4 million over a seven-year period from the start of commercial production.

Firestone gains a 30% interest in the properties and will lift that stake to 60% on the completion of the bankable feasibility study.

Initial small-scale mining at the project is expected to kick off by year-end, with the JV aiming for 30,000-40,000 tonnes per month of thermal coal from run-of-mine production of 60,000tpm.

Shares in Firestone are up 8.5% today to 5.1c.