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RESOURCE GENERATION LIMITED - Market Update

Release Date: 12/11/2018 08:20
Code(s): RSG     PDF:  
Wrap Text
Market Update

     Resource Generation Limited
     Registration number ACN 059 950 337
     (Incorporated and registered in Australia)
     ISIN: AU000000RES1
     Share Code on the ASX: RES
     Share Code on the JSE: RSG
     (“Resgen” or the “Company”)


     12 November 2018
     ASX Announcement

                                                                          Market Update
     Resource Generation Limited (ASX:RES) (Resgen or Company) would like to provide
     an update on the funding status of its Boikarabelo Coal Mine in the Waterberg, South
     Africa (Project).

     In the last market update covering the status of Boikarabelo Project funding (Quarterly
     Activities Report – 30 September 2018) the Company advised that it had received an
     indication from the Lender’s Deal Team (one of the Lenders in the Lending Syndicate
     still progressing credit approvals) that their Credit Committee submission would occur
     during the week commencing 29 October 2018. It was further indicated that should
     Credit Committee approval be secured the proposal would then be tabled for their Board
     approval at the November 2018 meeting.

     Subsequent discussions with the Lender’s Deal Team have confirmed that this Lender
     remains committed to the Project from a technical, commercial and strategic perspective
     however a short delay has arisen in scheduling the Credit Committee meeting. The
     Resgen Board is currently seeking a clear acknowledgement of the Lenders’ timeline to
     achieve Credit Committee and subsequent Board approval including the commitment to
     finalise all approval considerations before the Christmas break in South Africa.

     As a result of this further Lender delay the Resgen Board has agreed to accelerate
     discussions, in tandem, with the facilitator of alternative funding with a third party or
     parties as a substitute in the current Syndicate or as a complementary participant in the
     Syndicate (first reported in ASX Announcement: 20 August 2018).

Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (011) 010 6310 Fax +27 (086) 539 3792
Directors: Lulamile Xate (Chairman), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Peter Watson                         www.resgen.com.au
Interim CEO: Leapeetswe Molotsane
Joint Company secretaries: Mike Meintjes, Brendan O’Regan
The Board anticipates that, based on the above plan, it will be in a position to provide a
further update on progress ahead of the AGM at the end of November.

The Company will keep the market in accordance with its continuous disclosure
obligations.

Lulamile Xate
Chairman
For and on behalf of the Board

About Resgen:

Resource Generation Limited (Resgen) is an emerging ASX and JSE-listed energy company, currently
developing the Boikarabelo Coal Mine in South Africa’s Waterberg region. The Waterberg accounts for
around 40% of the country’s currently known coal resources. The Coal Resources and Coal Reserves for the
Boikarabelo Coal Mine, held through the operating subsidiary Ledjadja Coal, were recently updated based
upon a new mine plan and execution strategy. The Boikarabelo Coal Resources total 995Mt and the Coal
Reserves total 267Mt applying the JORC Code 2012 (ASX Announcement :23 January 2017- In accordance
with Listing Rule 5.23.2 the Company confirms that it is not aware of any new information that would impact
on the Reported Coal Resources and Coal Reserves). Stage 1 of the mine development targets saleable coal
production of 6 million tonnes per annum. Ledjadja Coal is a Black Economic Empowerment subsidiary (BEE)
operating under South Africa’s Broad-based Black Economic Empowerment Act, Section 9(5): Codes of Good
Practice

ResGen’s primary shareholders are the Public Investment Corporation of South Africa (PIC), Noble Group
and Altius Investment Holdings.



For further information please contact:

Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143

Media enquiries:

South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924

JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited




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