RSG - Resource Generation - Resource Generation successfully raises a$30 millionRelease Date: 05/11/2010 09:45:01 Code(s): RSG
RSG - Resource Generation - Resource Generation successfully raises a$30 million
through an equity raising
Resource Generation Limited
(Incorporated and registered in Australia)
(Registration number ACN 059 950 337)
Share code on the JSE Limited: RSG
Share code on the Australian Stock Exchange Limited: RES
("Resource Generation" or "the Company")
RESOURCE GENERATION SUCCESSFULLY RAISES A$30 MILLION THROUGH AN EQUITY RAISING
Resource Generation is pleased to announce the success of its equity capital
raising. A$30 million has been raised through 60 million shares at A$0.50 per
share. Citigroup Global Markets Australia Pty Limited acted as Sole Lead
Manager and Bookrunner to the placement and placed the shares with institutional
and sophisticated investors. The offering was oversubscribed and received
strong interest from Australian and global investors.
The placement will be issued in two tranches, with an initial unconditional
tranche of 27.4 million shares to be issued on Wednesday, 10 November 2010 and
the balance of 32.6 million shares to be issued conditional on the receipt of
shareholder approval. Resource Generation will seek shareholder approval for the
conditional tranche of the placement and ratification of the unconditional
tranche at a general meeting to be held on or about 13 December 2010.
Following the share issues in these two tranches, the Company will have
242,680,530 ordinary shares on issue.
Resource Generation has previously announced that it is bringing forward the
need to construct the rail link from the Boikarabelo mine to the existing rail
network in South Africa. The proceeds raised under the equity raising will be
used primarily for the rail link land acquisitions and access rights as well as
other expenditure for the Company`s Boikarabelo Mine in South Africa and for
The Board has also decided to invite shareholders to participate in the Resource
Generation Share Purchase Plan ("the SPP"). The SPP entitles shareholders in
the Company, irrespective of the size of their shareholding, to purchase up to
A$15,000 worth of shares in the Company at A$0.50 cents per share, being the
same price paid by institutional shareholders in the share placement. The
record date for participation is 3 November 2010. Further details will be sent
to shareholders shortly.
5 November 2010
Deloitte & Touche Sponsor Services (Pty) Limited
Date: 05/11/2010 09:45:01 Supplied by www.sharenet.co.za
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