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Release Date: 10/05/2018 08:47
Code(s): RSG     PDF:  
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”)
     10 May 2018

                                                                            Market Update

     Resource Generation Limited (ASX:RES/JSE:RSG)(Company) provides the following
     market update.

     Mine Development Funding
     The Company recently announced the execution of a Bilateral Senior Loan Facility
     Agreement (ASX Announcement: 16 April 2018) between the Industrial Development
     Corporation of South Africa Limited (IDC) and its subsidiary Ledjadja Coal (Pty) Ltd. The
     IDC is the first party of the proposed mine development funding syndicate (Syndicate) to
     secure credit committee approval.
     In the Quarterly Activities Report released on 30 April 2018, the Company noted a minor
     slippage in the credit approval process for one of the remaining two Syndicate members
     and a delay to the proposed board meeting for considering finalised credit approved term
     sheets from the Syndicate.
     At a board meeting held overnight in South Africa, Management provided a briefing on the
     status of the two remaining credit approvals. Whilst both of these parties have confirmed
     ongoing commitment to funding of the Boikarabelo Project, one of these parties has
     requested further information before proceeding with their process. The additional
     information requested revolves principally around (i) mitigation of counterparty credit risk
     exposures during the period that Noble Group Limited (Noble) finalises its restructure
     plans; and (ii) the specific plans to secure working capital for the ramp-up of the mine.

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
Whilst this further delay is unfortunate, the Board believes that these concerns can be
addressed in a timely manner and has set the objective of resolving these with the lender
by the end of the month. This will then enable the credit approval process to proceed in
June 2018.
In relation to the first matter raised by this lender, Noble has agreed to work with all parties
to identify a mutually acceptable mitigation strategy.
In relation to the second matter raised, the Company previously indicated (ASX
Announcement: 15 November 2017) that ramp-up working capital required in the period
leading up to ‘first coal’ would be raised at a point where the Project has been substantially
de-risked. The Company believes that this is still a reasonable assumption but will work
with this lender to provide further comfort on how this will be achieved.
At this time the Board believes that it is not prudent to set a timetable beyond satisfying
the additional information request and will keep the market informed in accordance with its
continuous disclosure obligations.
Noble has communicated to the Board its willingness to consider a request to cover any
working capital shortfall arising from this further delay and the Company is appreciative of
this ongoing support.
Rail Link Funding
The Company has been able to identify a number of parties interested in funding the
required rail link for the Project. The most advanced proposal is going through an internal
credit approval process and if approved, a short due diligence exercise will be initiated.

On behalf of the Board
L M Xate

                                                                                           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 or +27 11 010 6310

Mike Meintjes, Company Secretary on 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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