Wrap Text
Market Update
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”)
8 March 2018
Market Update
Resource Generation Limited (ASX:RES/JSE:RSG)(Company) is pleased to provide the following
market update.
Mine Development Funding
The activities associated with the funding of the mine development continue to make progress,
although slower than the expectations indicated by Management in the November 2017 update. In
particular, numerous hurdles have been cleared with the various proposed Lenders’ internal credit
approval processes and the proposed Lenders have now notified the Company of specific dates
on which they expect to have received their respective full Credit Committee and Board approvals
for the funding package. The last of these is scheduled to be received by the Company during the
first week in April 2018. On the basis of this information the Board is currently scheduled to meet
on Wednesday 11 April 2018 to consider a recommendation to Shareholders regarding the
Lenders’ credit approved term sheets. The Board will be assisted in its deliberations by a
management recommendation and by advice from the Company’s corporate finance advisers.
As a further positive sign in progressing the mine development funding proposal, some of the
proposed Lenders have requested that the Company enter into bi-lateral loan agreements before
31 March 2018. These agreements would remain conditional upon various conditions precedent
being satisfied including final shareholder approval to be sought at an Extraordinary General
Meeting (EGM).
Based on the timing notified by the proposed Lenders, the Company is now targeting the
Shareholders EGM towards the end of June 2018.
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 (0) 11 010 6310 Fax +27 (0) 86 539 3792
Directors: Lulamile Xate (Chairman), Rob Croll, Dr. Konji Sebati, Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Peter Watson
Company Secretary: Mike Meintjes
www.resgen.com.au
Rail Link Funding
Discussions relating to the funding of the Rail Link continue to make satisfactory progress with
several viable solutions being progressed in parallel with each other. Management advised the
Board that it is confident that a funding solution for the Rail Link should be in place prior to Financial
Close and first drawdown for the mine development
Other Contractual Arrangements
In parallel with the funding proposals, work is progressing on confirmation of the required export
allocation of 3.6mtpa at Richards Bay. The Company is also planning to re-engage with ESKOM
in relation to the opportunity to securing a long term domestic coal supply agreement as this is
seen as adding value to the Project.
CEO Arrangements
During the contract extension discussions last year the current CEO, Rob Lowe, indicated a desire
to stand down from the role shortly after Financial Close and to then support the business transition
to the mine development phase. The Board, in consultation with the proposed Lenders, has
decided to commence this transition process early with the Board’s Nomination Committee being
tasked to conduct a market search using an industry qualified recruitment agency in South Africa.
Effective immediately, Rob Lowe will therefore stand down as CEO and assume the role of Advisor-
Project Funding focusing exclusively on achievement of Financial Close and first drawdown of
funds. Rob will then remain with the Company on a full-time basis assisting with project start-up
activities until completion of his contract on 31 December 2018.
Leapeetswe (Papi) Molotsane, currently a Non-Executive Director, will be appointed as Interim
Managing Director and CEO on a month to month basis through to Financial Close, or until the
appointment of a replacement CEO. Papi has already been assisting the project funding
workstreams and will have the full support of Rob Lowe in pursuing Financial Close. The required
ASX Listing Rule disclosures for the Interim Managing Director and CEO are set out in Appendix
1.
On behalf of the Board
L M Xate
Chairman
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 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:
Lulamile Xate, Chairman on info@resgen.com.au or +27 11 010 6310
Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143
Media enquiries:
Australia: James Strong 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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Appendix 1
In accordance with ASX Listing Rule 3.16.4 the material terms of the employment arrangement for
the Interim Managing Director and CEO are summarized below:
. Month to month arrangement ie one calendar month’s termination notice;
. Cash remuneration of R300,000 per month (exclusive of all related employment costs);
. Entitlement to use of a Company vehicle;
. No eligibility to bonus incentives
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