Wrap Text
Market Update
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
(“Resgen” or the “Company”)
19 June 2020
Market Update
Resource Generation Limited (ASX:RES) (Resgen or Company) is pleased to provide
the following Market Update.
Rail Link Funding
On 5 May 2020, the Company announced that its subsidiary, Ledjadja Coal Pty Ltd
(Ledjadja Coal), has entered into non-binding equity and debt term sheets
(collectively, the Term Sheets) with Pan African Infrastructure Development Fund 2
SA and PAIDF2 LLC under the management of Harith General Partners Proprietary
Limited (Harith) for the funding of the Boikarabelo Coal Project Rail Link. Although
interim approvals were given by Harith, the Term Sheets are not legally binding until
final approval by the Harith Investment Committee and Board.
Since the announcement, Resgen has been receiving regular updates from Harith on
progress in securing the Investment Committee and Board approval and understands
that the outcomes have been positive and that no impediments have been identified.
Accordingly, the final approval should be forthcoming shortly.
The legal documentation pertaining to formalisation of the Term Sheets into legal
agreements is being progressed in tandem with finalisation of the approvals process.
Working Capital Funding
On 15 May 2020, the Company announced that it had received an ASX waiver from
applying the requirements of Listing Rule 10.1 and was proceeding to finalise legal
documentation for an additional US$2.25m in working capital funding with Noble
Resources International Pte Ltd. Resgen can now confirm that the legal documentation
has been finalised and executed by both parties in the form of an Eighth Deed of
Amendment to the Facility Agreement dated 3 March 2014.
Resource Generation Limited (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD 4068
GPO Box 126, Albion QLD 4010. Phone +27 (012) 345 1057 Fax +27 (012) 345 5314
www.resgen.com.au
The working capital component of the Facility Agreement (which excludes the Original
Noble Loan of US$20m plus accumulated interest) will be US$29.15m plus interest
including this additional extension. This amount is to be repaid from the proceeds of the
Mine Funding Package upon Financial Close.
Conditions Precedent (CP) to achieve Financial Close
On 5 December 2019, the Company announced the execution of binding arrangements
for the funding of the Boikarabelo Coal Mine (Mine Funding Package) which were
subject to a number of conditions requiring satisfaction, deferral or waiver by the
Lenders (Conditions Precedent) before the transaction completes and becomes
effective (Financial Close). These conditions included those customary for Lender’s to
manage risk exposures in transactions of this nature.
Since execution of the Mine Funding Package the Company has diligently focused on
satisfying the Conditions Precedent and has made significant progress in satisfying most
of the Conditions Precedent. However, a small number of Conditions Precedent remain
outstanding and therefore the Company and Ledjadja Coal have approached the
Lenders with a request to waive a number of conditions or convert certain of them to
Conditions Subsequent to be achieved before first drawdown. A constructive dialogue
is ongoing with the Lenders while they are considering these requests. The Company
will, under the circumstances, not be able to achieve its target of 30 June 2020 for
Financial Close.
The Company is working with the Lenders to agree on a timeline for Financial Close and
to agree an extension of the Common Terms Agreement post 30 June 2020 to cover a
revised target date.
The Company will keep the Market informed regarding further progress in accordance
with its continuous disclosure obligations.
Lulamile Xate
Chairman
For and on behalf of the Board
PAGE 2
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
ResGen’s primary shareholders are the Public Investment Corporation of South Africa (PIC),
Noble Group and Altius Investment Holdings.
Forward looking statements
This announcement contains certain forward-looking statements. Forward-looking statements
include those containing words such as “anticipate”, “believe”, “expect”, “project”, “forecast”,
“estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan”, “consider”,
“foresee”, “aim”, “will” and other similar expressions. Any forward-looking statements, opinions
and estimates provided in this announcement are based on assumptions and contingencies which
are subject to change without notice and involve known and unknown risks and uncertainties and
other factors which are beyond the control of ResGen. To the maximum extent permitted by law,
the directors of ResGen, ResGen and any of its related bodies corporate and affiliates, and their
officers, partners, employees, agents, associates and advisers disclaim any obligations or
undertaking to release any updates or revisions to the information in this announcement to reflect
any change in expectations or assumptions, do not make any representation or warranty, express
or implied, as to the accuracy, reliability or completeness of such information, or likelihood of
fulfillment of any forward-looking statement or any event or results expressed or implied in any
forward-looking statement, and disclaim all responsibility and liability for these forward-looking
statements (including, without limitation, liability for negligence).
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) Limited
PAGE 3
Date: 19-06-2020 09:17:00
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