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”)
10 September 2020
Market Update
Resource Generation Limited (ASX:RES) (Resgen or Company) provides the following
Market Update on the status of finalising the Mine Funding Package for development of
the Boikarabelo Mine.
On 5 December 2019, the Company announced that along with its majority owned
subsidiary, Ledjadja Coal, it had executed principal binding agreements for the funding
of the construction of the Boikarabelo Mine.
In the Quarterly Activities Report released on 31 July 2020, the Company advised that
a Deed of Amendment to the Common Terms Agreement for the Mine Funding Package
extending the Long Stop Date for achieving Financial Close from 30 June to 30
September 2020 had been agreed in principle and was in the process of being executed.
The extension was required to allow for preparation of final submissions to the Lenders’
Credit Committees expected to be scheduled during September 2020. These
submissions were to include support for the Company’s requested waiver or deferral of
certain Conditions Precedent to achieving Financial Close.
On 4 September 2020, the Company advised that Ledjadja Coal, the Borrower under
the terms of the Mine Funding Package, had made significant progress with respect to
satisfying the majority of the Conditions Precedent to Financial Close and had formally
requested that the Lenders either:
. defer a limited number of Conditions Precedent to a date post Financial Close due
to the practical inability of satisfying the said Conditions Precedent before the end
of September 2020; or
. consider proposed viable alternative solutions with respect to those specific
Conditions Precedent, which could be satisfied before Financial Close.
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 Lenders’ Project Teams have responded to the formal requests detailed above and
advised that they will not be approaching their Credit Committees until the following key
Conditions Precedent have been met:
. Execution of a binding Ramp-up Working Capital Facility Agreement;
. Execution of a binding and fully funded Mining Services Contract; and
. Execution of a domestic back to back Offtake Agreement with Noble Group to meet
the Eskom BEE procurement conditions.
Based on significant progress achieved to date in the negotiations, Management are of
the view that execution of both a binding Ramp-up Working Capital Facility Agreement
and fully funded Mining Services Contract could be completed by the end of October
2020. Noble Group have indicated that they expect to have the Offtake Agreement
concluded by then as well.
On the reasonable assumption that these Conditions Precedent can be met by the end
of October 2020, Lenders would then be in a position to approach their various Credit
Committees during the month of November 2020. Management plans to approach
Lenders on the revised target timeline to seek a further extension of the Long Stop Date.
The Group will require additional working capital funding to bridge this delay in achieving
Financial Close along with a deferral of loan repayments under the Facility Agreement
executed with Noble Group dated 3 March 2014, as amended, from 30 September 2020
to 30 November 2020. Management will be commencing dialogue with Noble Group in
this regard and is investigating other possible sources of funding
The Company will keep the Market informed regarding further progress in accordance
with its continuous disclosure obligations.
Leapeetswe Molotsane
Interim CEO and Director
Approved for release by the Board
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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: 10-09-2020 07:05:00
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