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Release Date: 24/06/2019 07:05
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”)

     24 June 2019
     ASX Announcement

                                                                          Market Update

     Resource Generation Limited (ASX:RES) (Resgen or Company) refers to the market
     update released on 3 June 2019 which detailed the further hurdles to be addressed
     before overall funding (Financial Close) for its Boikarabelo Coal Mine in the Waterberg,
     South Africa (Project) is achieved.

     The Company is now pleased to advise that the third and final member of the proposed
     Lending Syndicate (last referred to in ASX Announcements on 15 March and 1 April
     2019) has confirmed in writing its participation (credit approval) for their proposed
     contribution to the Company’s funding application in relation to the construction of the
     Boikarabelo mine. This participation is subject to certain terms and conditions and board
     approval of a Common Term Sheet.

     The combined proposed mine construction funding package offered by members of the
     proposed Lending Syndicate can now be confirmed as R4.2b (approx. A$420m at
     current exchange rates).

     Discussions can now commence to finalise a Common Term Sheet with all members of
     the proposed Lending Syndicate. Once the proposed common terms are agreed and
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, Michael Gray               
Interim CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
available for incorporation into the base case financial model for the Project, the Board
will be in a position to consider the proposal for approval. At the time of any Board
approval the terms will be binding on all parties and only subject to certain conditions
precedent that are specified by the proposed Lending Syndicate. The Company will then
be in a position to disclose the key terms of the mine funding package together with the
targeted timeline to Financial Close.

The rail link negotiations for a funding package of R750m (approx. A$75m at current
exchange rates) are at an advanced stage. The funding is required to construct the
44km rail infrastructure linking the mine to the Transnet main line. Finalisation of a
binding term sheet for the rail link funding is expected to be a condition precedent
attached to the proposed mine construction funding.

In the lead up to commissioning of the Mine the Company will also need to raise working
capital currently estimated as being R500m (approx. A$50m at current exchange rates).

On 17 May 2019, the Company advised the market that it was finalising the extension
of a further US$2.5m in working capital funding under a Facility Agreement with Noble
Resources International Pte Ltd (Noble). This further extension of funding was to be
made available for the period through to 30 June 2019. At the date of this release the
Company has drawn down US$1.0m of the further US$2.5m extension. The Company
is in the process of agreeing with Noble to extend the availability period for the undrawn
amount of up to US$1.5m.

The Company will keep the market informed regarding further progress on project
funding in accordance with its continuous disclosure obligations.

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 Coal 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)

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operating under South Africa’s Broad-based Black Economic Empowerment Act, Section 9(5): Codes of Good

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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