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RESOURCE GENERATION LIMITED - Extension of Facility Agreement

Release Date: 01/08/2018 09:01
Code(s): RSG     PDF:  
Wrap Text
Extension of Facility 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”)

    1 August 2018
    ASX Announcement

                                         Extension of Facility Agreement
    Resource Generation Limited (ASX:RES) (Resgen or Company) has agreed a further
    extension of the Facility Agreement of 3 March 2014 (Facility), under which Noble
    Resources International Pte Ltd will make available additional funds of up to US$2.5m
    to the Company's subsidiary, Ledjadja Coal (Pty) Ltd (LCL) to fund operations whilst
    project funding is secured. The total Facility made available to the Company is now

    The additional funds are to be made available on the same terms as the existing Facility
    and can be drawn in monthly tranches over the period to 31 October 2018.

    Key terms associated with the extension of the Facility include:

    •       The additional funds together with the existing Facility of US$34.7m (see ASX
            Announcements: 14 March 2017, 7 December 2017 and 29 March 2018) are
            unsecured and subject to a parent company guarantee of LCL’s obligations under the
    •       The funding to be provided in monthly instalments over the period August to October
    •       Interest accrues at 10.75% pa and can be capitalised on a six-monthly basis unless
            the borrower elects otherwise to pay such interest; and
    •       The initial Facility of US$20m is now repayable in instalments commencing from 1
            November 2018 (previously 1 August 2018) with a termination date of 31 March 2025,
            however the additional funds made available under the extension of the Facility
            (US$17.2m) are repayable from the proceeds of the first drawdown of any facility
            agreement for any project financing for the Project.

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      
Acting CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
The Company wishes to acknowledge the ongoing support from Noble Group to enable
project funding negotiations.

Lulamile Xate
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 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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