RESOURCE GENERATION LIMITED - Resource Generation signs domestic offtake contractRelease Date: 04/06/2013 08:07:00 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?)
4 June 2013
Resource Generation signs domestic offtake contract
A domestic coal offtake contract for 3.0 million tonnes of coal per annum has been
entered into with Noble Resources International Pte. Ltd, a wholly owned subsidiary of
the Noble Group (Noble). The term is for 8 years, with supply to begin after production
commences at the Boikarabelo mine. The contract is based on commercial terms which
are expected to facilitate completion of debt funding, whilst maintaining appropriate rates
of return to shareholders.
Detailed discussions with potential financiers of the mining equipment, materials
handling equipment, the rail line and project funding are all taking place in tandem.
Paul Jury, managing director, said: ?this contract for domestic offtake now ensures
revenue for Stage 1 of the Boikarabelo project is nearly fully underwritten. It provides
certainty of cash flow generation further bolstering project value. It also highlights the
tangible strategic value of the relationship with Noble.?
Regular logistics meetings are being held with Transnet Freight Rail (TFR) to plan the
timely delivery of haulage services following the commencement of production at
Boikarabelo. TFR is making good progress with the first upgrade works on the
Thabazimbi line which will help to ensure initial capacity requirements are met.
Noble is a global supply chain manager of agricultural and energy products and metals,
minerals and ores. Noble is listed in Singapore (SGX: N21) and operates from over 140
4 June 2013
Macquarie First South Capital (Proprietary) Limited
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: 04/06/2013 08:07:00 Supplied by www.sharenet.co.za
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