RESOURCE GENERATION LIMITED - Market Update

Release Date: 20/08/2018 08:29
Code(s): RSG
 
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”)
     20 August 2018
     ASX Announcement

                                                                          Market Update
     Resource Generation Limited (ASX:RES) (Resgen or Company) would like to provide
     an update on the funding status of its Boikarabelo Coal Mine in the Waterberg, South
     Africa.

     In the latest Quarterly Activities Report (ASX Release: 31 July 2018) the Company
     advised that there had been an unexpected delay in securing the credit approval from
     one of the members of the proposed lending syndicate (Syndicate). The Company was
     informed by the Lender’s Deal Team that the delay related to a broad-based internal
     review of the Lender organisation’s ESG investment criteria. Actions agreed by
     Resgen’s Board at the time were to intensify engagement with this Lender given the
     advanced status of the submission and at the same time to trigger a contingency plan
     based on interest that had been expressed by third parties.

     Engagement with this Lender continues and the Company remains focused on working
     with the Syndicate to achieve final approvals as soon as practically possible. However,
     the uncertainty associated with having no control over the timeframes makes it
     imperative for the Board to explore interest expressed by third parties. Early indications
     are that it may be possible, subject to due diligence, to structure involvement by a third
     party as a substitute funder in the Syndicate or as a complementary participant in the
     Syndicate

     The Company plans to continue pursuing a tandem approach to finding a funding
     solution but would like to flag that further delays are now likely, particularly where due
     diligence activities associated with a potential new participant need to be
     accommodated.
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 (011) 010 6310 Fax +27 (086) 539 3792
Directors: Lulamile Xate (Chairman), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Peter Watson                         www.resgen.com.au
Acting CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
The Company will keep the market informed in accordance with its continuous
disclosure obligations.

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:

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

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




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