Resource Generation Limited - Boikarabelos Substantial Value Expected To Be Confirmed By Project Financiers Due DiligenceRelease Date: 31/07/2012 08:23:00 Code(s): RSG
Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with registration number ACN: 059 950 337
Share Code on the ASX: RES
Share Code on the JSE: RSG
("Resgen" or the ?Company?)
31 July 2012
Boikarabelo?s substantial value expected to be confirmed
by project financiers? due diligence
Resource Generation Limited, which has secured its major regulatory approvals and
transport contracts for development of its Boikarabelo mine on one of South Africa?s
largest remaining coal deposits, today released its quarterly report for the three months to
30 June 2012. This confirms that banks are undertaking due diligence before offering
terms for project finance for the mine?s stage 1 development.
?Offers of project finance would confirm banks? confidence in Boikarabelo?s cash flow
and, assuming completion, would support a substantial increase in Resource Generation?s
enterprise value. This value would then determine the price at which equity is raised for
the balance of the stage 1 capital development cost and working capital,? said Paul Jury,
managing director of Resource Generation.
?We estimate that construction of stage 2 of the project will be financed from cash flow
and it is not expected to require a further equity raising,? said Mr Jury.
Confirming management?s confidence that project finance and equity capital can be
secured, the quarterly report also announces that the company has started to expand its
South African management team to enable construction to begin early in 2013.
Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Company Secretary on (02) 9376 9000
Anthony Tregoning (02) 8264 1000
Resource Generation is developing the Boikarabelo coal mine in the Waterberg
region of South Africa where there are probable reserves of 744.8 million tonnes of
coal on 35% of the tenements under its control. Stage 1 of the mine development
targets saleable coal production of 6 million tonnes per annum.
Date: 31/07/2012 08:23:00 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.