Wrap Text
Working Capital Funding
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”)
16 November 2020
Working Capital Funding
Resource Generation Limited (ASX:RES) (Resgen or Company) refers to the Market
Update of 28 October 2020 where the Company noted that it was engaging with its
secured creditor, the Noble Group (Noble), after being advised of the withdrawal of the
Industrial Development Corporation of South Africa Limited (IDC) from the Mine Funding
Package approved by Shareholders on 7 April 2020.
Resgen is now pleased to advise that it has reached in-principle agreement with Noble
to provide additional working capital to its partly owned subsidiary, Ledjadja Coal (Pty)
Ltd (Ledjadja Coal), in the form of a further extension to the Facility Agreement dated
3 March 2014 as amended from time to time, including most recently the Eighth Deed
of Amendment and Restatement dated 1 June 2020 (Facility Agreement).
The in-principle agreement includes the following terms and conditions:
. extending the Facility Agreement by up to an additional US$0.92m (total facility
increased to US$50.07m) on similar terms to those included in the Eighth Deed of
Amendment and Restatement (see ASX Announcements: 2 April and 15 May
2020);
. the further extension of funds will be made available in three instalments to cover
an austerity operating budget for the period through to 28 February 2021. During
this period measures to ensure the continued solvency of the Resgen Group and
alternatives for progressing development of the Boikarabelo Project will be
considered in co-operation with Noble and its Financial Advisor;
. the additional funds are only to be used for amounts provided in the austerity
operating budget and are not to be used to engage external consultants in
connection with securing alternative project financing without express approval;
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
. amending the first date for repayment of the Facility Agreement from 30 September
2020 to 28 February 2021;
. formal Noble Board approval of the additional extension of funds;
. executing full form documents effecting the necessary amendment to the Facility
Agreement and any further documents required to affect any of the financial
support by 30 November 2020; and
. Resgen and Ledjadja Coal obtaining all necessary internal and regulatory
approvals or waivers in respect of all documents being entered into before the
second instalment is released.
The Non-Executive Directors have agreed to waive entitlement to director fees for the
period covered by the austerity operating budget.
In addition to the short-term working capital arrangement noted above, the Resgen
Group has been able to secure an extension of payment terms with the principal
consultants associated with the Mine Funding Package through to 28 February 2021.
On the basis of these recent developments, the Company will now re-engage with its
external auditor on finalisation of the Financial Report for the year ended 30 June 2020.
It will only be after lodgement with the ASX of the Audited Financial Report for the year
ended 30 June 2020 and the 2020 Annual Report that the Company will be able to apply
for its ordinary fully paid shares to be re-listed i.e. lifting of the current trading
suspension.
The Company will keep the Market informed in accordance with its continuous
disclosure obligations.
Leapeetswe Molotsane
Interim CEO and Director
Approved for release by 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: 16-11-2020 08:47:00
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