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Release Date: 01/03/2021 08:54
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”)
1 March 2021

Market Update

Resource Generation Limited (ASX:RES) (Resgen or Company) is pleased to provide
a market update covering (i) the status of the strategic review that was initiated (see
ASX announcement 16 November 2020) to consider alternatives for progressing
development of the Boikarabelo Project; and (ii) the short-term working capital funding
position of the Company.

Strategic Review

The Strategic Review initiated in November 2021 was split into two phases, namely
Phase 1 - Market sounding and data-room preparation and Phase 2 Engagement with
interested parties. Phase 1 has taken longer than first expected but has recently been
completed. Resgen is now executing Non-Disclosure Agreements with a number of
interested parties ahead of providing access to the data-room. Interested parties will
then be given a period of 4-6 weeks to complete their due diligence ahead of submitting
indicative proposals.

The list of parties approached as part of the review was broad based, however interest
to date has largely been from South African based entities.

Short-term working capital funding

On 14 December 2020, the Company advised that it had executed a Ninth Deed of
Amendment and Restatement to the Facility Agreement dated 3 March 2014 as
amended from time to time (Facility Agreement) with Noble Group. The additional
financial support of US$920,000 has now been made available in three instalments to
cover an austerity operating budget to progress the Strategic Review for the period
through to 28 February 2021.

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, Greg Hunter, Michael Gray                 
Interim CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes

In order to finalise the Strategic Review outlined above, the Company has recently
approached Noble Group for additional working capital support based on an austerity
budget covering the three month period from 1 March to 31 May 2021. In addition,
Resgen has requested a further extension of the first repayment date under the Facility
Agreement from 28 February 2021 to 30 June 2021. At the date of this announcement
the Company awaits a response from Noble on these requests.

The Company has also obtained a further extension to payment terms agreed with the
key consultants associated with the Mine Funding Package (legal, financial and
technical) through to 31 May 2021. These unsecured amounts total approximately


Mike Meintjes, our Company Secretary, has advised that as a result of competing
demands on his time he will be resigning effective 12 March 2021. The Company is in
discussions to secure a replacement and will advise the market in due course.

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

Lulamile Xate
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

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 or +61 413 706 143

                                                                                                      PAGE 2
Media enquiries:

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

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

                                                                   PAGE 3

Date: 01-03-2021 08:54:00
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