Go Back Email this Link to a friend


Rsg - Resource Generation Limited - New Bee Partners To Facilitate

Release Date: 31/03/2011 10:23:01      Code(s): RSG
RSG - Resource Generation Limited - New BEE partners to facilitate              
development of Resource Generation`s Boikarabelo coal mine                      
Resource Generation Limited                                                     
ACN 059 950 337                                                                 
(Incorporated and registered in Australia)                                      
(Registration number ACN 059 950 337)                                           
Share code on the JSE Limited: RSG      ISIN: AU000000RES1                      
Share code on the Australian Stock Exchange Limited: RES ISIN: AU000000RES1     
("Resgen")                                                                      
New BEE partners to facilitate development of Resource Generation`s             
Boikarabelo coal mine                                                           
Resource Generation Limited, which is developing one of South Africa`s          
largest remaining coal deposits, announced today that Fairy Wing Trading 136    
(Pty) Limited (FWT), a company owned by a group of South African businessmen    
and women with strong commercial and government relationships, has agreed to    
acquire the 26% shareholding in Resource Generation`s Ledjadja joint venture    
that was owned by its original BEE (black economic empowerment) partner.        
Resource Generation will facilitate the acquisition through a loan of R80       
million ($11.5 million) to FWT.  The loan, which will be secured over FWT`s     
shares in Ledjadja and repayable out of the first dividends due to FWT from     
the joint venture, will be made available in three tranches.  The first         
tranche of R60 million will be paid during the next quarter following           
finalisation of documentation for the Mining Right for Boikarabelo, which       
will incorporate FWT as the BEE partner, the second tranche of R10 million      
will be paid on 30 September 2011 with a third tranche of R10 million on 30     
September 2012. The loan will be provided from Resource Generation`s existing   
funds.                                                                          
Paul Jury, managing director of Resource Generation, said: `We are delighted    
that, as we progress towards the completion of our Boikarabelo mine,            
scheduled for late 2013, we will have partners who are able to contribute       
considerable value through commercial guidance and relationships.  They have    
already exhibited their ability to assist and the benefits that can result      
from a constructive BEE partnership.`                                           
As part of the transaction, the Ledjadja joint venture will assume Resource     
Generation`s obligation to pay to Apex Resources Inc. a royalty of R2 per       
tonne of coal shipped up to a limit of R30 million.                             
Sydney, Australia                                                               
31 March 2011                                                                   
Contacts                                                                        
Paul Jury, Managing Director on (02) 9376 9000 or                               
Steve Matthews, Company Secretary on (02) 9376 9000                             
Media enquiries                                                                 
Anthony Tregoning (02) 8264 1000                                                
Sponsor                                                                         
Deloitte & Touche Sponsor Services (Pty) Limited                                
Date: 31/03/2011 10:23:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.