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Project Funding 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”)
16 April 2018
Project Funding Update
Resource Generation Limited (ASX:RES/JSE:RSG)(Company or Resgen) is pleased to
provide the following update in relation to the status of negotiations to secure funding for
the development of the Boikarabelo Mine (Project).
Bilateral Senior Loan Facility Agreement
On 29 March 2018, the Company advised the market that the proposed funding syndicate
(Syndicate) for the development of the Project (which excludes the rail link) had
commenced their various credit approval processes and that the Syndicate comprised of
three parties.
The Company is pleased to advise that the Industrial Development Corporation of South
Africa Limited (IDC) is the first of these parties to approve the proposed funding and a
Bilateral Senior Loan Facility Agreement (Facility Agreement) has been executed with
the Company’s subsidiary, Ledjadja Coal (Pty) Ltd, to confirm their commitment to the
Project.
The Facility Agreement, whilst binding on the parties, is dependent on a number of
Conditions Precedent, including but not limited to:
. Resgen Board and Shareholder approval of the funding Term Sheets with the
Syndicate;
. Completion of a Common Terms Agreement with the other two Syndicate
members, the finalised Facility Finance Documents becoming unconditional and all
required securities being registered;
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
. All lower ranking components of the proposed funding package having been drawn
down;
. The Project becoming fully funded including arranging separate rail link financing;
and
. No material adverse changes arising (to be specified in the Common Terms
Agreement).
As this Facility Agreement is only one component of a package of Project financing
documents, at this point the Company is not incurring any liabilities or limiting its rights
to negotiate fair and balanced agreements.
In essence, the Facility Agreement serves to bind the parties to advance or draw the
senior debt funds for the Project subject to completion of, amongst others, the
Conditions Precedent listed above.
Key terms in the Facility Agreement have been limited to:
. Specifying the quantum of IDC’s commitment to the senior debt component of the
proposed funding package which is R540m;
. Specifying an interest rate which is linked to JIBAR (Johannesburg Interbank
Agreed Rate) with a margin of 6% during construction and 5% thereafter;
. Specifying a Facility Raising Fee, due at the time of Financial Close, of 1.5% and a
cancellation fee of 1% applicable to any undrawn amounts under the Facility;
. A long stop date for completion of all Conditions Precedent of 28 February 2020
which would be an automatic termination of the Agreement unless agreed
otherwise; and
. All further terms and conditions are referenced to a Common Terms Agreement to
be negotiated when, and if, the remaining Syndicate members secure credit
approvals and the Term Sheets are approved by all parties.
The Company’s Interim Managing Director and CEO, Papi Molotsane, commented ‘we are
delighted to secure the support of the IDC as the first step in seeking credit approvals from
the proposed funding Syndicate and will continue to work with the remaining two parties in
accordance with the timelines advised in our 29 March release’.
On behalf of the Board
L M Xate
Chairman
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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 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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