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RESOURCE GENERATION LIMITED - Coal Offtake Agreement

Release Date: 11/12/2017 09:39
Code(s): RSG     PDF:  
Wrap Text
Coal Offtake Agreement

    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”)


    11 December 2017
    ASX Announcement


                                                    Coal Offtake Agreement
    The Company, through its subsidiary, Ledjadja Coal Pty Ltd (LCL), has today signed an
    agreement with Noble Resources International Pte Ltd (Noble) for the supply of additional
    uncontracted coal to be produced from the Boikarabelo mine (Uncontracted Tonnage Offtake
    Agreement).

    As announced on 14 March 2017, as part of the extension of the Facility Agreement dated 3
    March 2014 the Company agreed to restate the existing domestic offtake and coal marketing
    agreements it has with Noble and its related bodies corporate, and grant Noble a first right of
    refusal to purchase any additional uncontracted coal to be produced from the mine.

    The terms of the agreement were to be agreed by 30 June 2017, failing which they were to be
    on the same terms as the Agreement for the Sale and Purchase of Boikarabelo Thermal Coal
    dated 31 December 2012 (and restated on 28 March 2013) (Noble Export Offtake
    Agreement). By letters of agreement between Noble and LCL the date to agree the terms was
    extended from 30 June 2017 to 11 December 2017 to allow for completion of the negotiation
    process.

    The key terms of the Uncontracted Tonnage Offtake Agreement are set out below:
          .      LCL has agreed to offer to sell and deliver to Noble:
                    o for years 1 to 3, a committed quantity of 800,000 tonnes of coal per annum,
                       plus up to 300,000 tonnes of coal per annum as advised by LCL to Noble on a
                       quarterly basis; and

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 (012) 345 1057 Fax +27 (012) 345 5314
Directors: Lulamile Xate (Chairman), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Peter Watson                       www.resgen.com.au
CEO: Rob Lowe
           o   from year 4 onwards, up to 200,000 tonnes of coal per annum as advised by
               LCL to Noble on a quarterly basis.
   .   LCL's obligation to sell and deliver the coal under the Uncontracted Tonnage Offtake
       Agreement is subject to LCL having sufficient contracted rail and port capacity to
       deliver the tonnages (taking account of LCL's existing commitments).
The Uncontracted Tonnage Offtake Agreement is otherwise on the same terms as the Noble
Export Offtake Agreement.


Performance of the Uncontracted Tonnage Offtake Agreement is subject to receipt of relevant
regulatory/shareholder approvals. The Company intends to consult with ASX regarding what
shareholder approvals (if any) it may require and will update the market in due course.


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 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.

For further information please contact:

Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143

Media enquiries:

Australia: Martin Debelle on + 61 282 340 102

South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924

JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd



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