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Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with
registration number ACN: 059 950 337
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
(“Resource Generation” or the “Company”)
13 September 2018
ASX Announcement
Market Update
Resource Generation Limited (ASX:RES) (Resgen or Company) would like to provide
an update on the funding status of its Boikarabelo Coal Mine in the Waterberg, South
Africa (Project).
In the last market update covering the status of Project (ASX Release: 20 August 2018)
the Company advised that it was pursuing a tandem approach to finding a funding
solution. This approach involved:
1. Continuing to engage with the proposed lending syndicate (Syndicate) and more
specifically the Lender delaying its credit committee approval processes due to a
broad-based internal review of the organisation’s ESG investment criteria; and
2. Subject to due diligence, to structure involvement by a third party as a substitute
funder in the Syndicate or as a complementary participant in the Syndicate
The Company has now received a commitment from the Lender referred to in 1 above
to table the funding proposal prepared by the Deal Team for credit committee approval
and, if secured, final Lender Board approval by the end of October 2018. Consequently,
the Board has agreed to prioritise this funding route and dedicate all time and resources
to securing a favourable outcome.
Engagement and due diligence planning occurred during August 2018 with the
interested third party funder referred to in 2 above. This process continues to be
progressed on a basis that considers the priority now agreed to achieving an end of
October outcome with the Syndicate.
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, Manish Dahiya, Peter Watson www.resgen.com.au
Interim CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
The Company has recalibrated the funding calendar for achieving Financial Close and
determined that this is likely to only occur towards the end of Q1 in 2019. Consequently,
this highlighted the need to secure additional working capital to allow an orderly
conclusion to the funding process. In this regard a conditional agreement has been
reached with Noble Group (Noble) to provide the projected additional working capital
requirements through to 31 March 2019. This agreement includes the following terms
and conditions:
? extending the current Working Capital Facility (a component of the Facility
Agreement) by an additional US$4.7m;
? amending the first date for repayment of the Facility from 1 November 2018 to 1
April 2019.
? granting of new security to secure Resgen and Ledjadja Coal’s obligations to
Noble under the Facility Agreement;
? executing full form documents effecting the necessary amendment to the Facility
Agreement and the additional security documents;
? Resgen and Ledjadja Coal obtaining all necessary internal and regulatory
approvals or waivers in respect of all documents being entered into; and
? All costs associated with negotiation and documentation to be borne by Resgen.
The Company will keep the market informed regarding further progress on project
funding in accordance with its continuous disclosure obligations.
Lulamile Xate
Chairman
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
Practice
PAGE 2
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 mmeintjes@resgen.com.au or +61 413 706 143
Media enquiries:
South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd
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Date: 13/09/2018 08:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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