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RESOURCE GENERATION LIMITED - Boikarabelo Coal Project Funding Update

Release Date: 27/11/2019 10:01
Code(s): RSG     PDF:  
Wrap Text
Boikarabelo Coal Project Funding Update

     Resource Generation Limited
     Registration number ACN 059 950 337
     (Incorporated and registered in Australia)
     ISIN: AU000000RES1
     Share Code on the ASX: RES
     Share Code on the JSE: RSG
     (“Resgen” or the “Company”)
     27 November 2019


     Boikarabelo Coal Project Funding Update
     Resource Generation Limited (ASX:RES/JSE:RSG)(Company or ResGen) is pleased to
     provide an update on the status of negotiations with a group of three potential lenders
     (Lending Syndicate) for the funding of the Boikarabelo Coal Project (Project).

     On 24 June 2019, the Company announced that the third and final member of what is now
     the Lending Syndicate had received credit approval for their contribution to Ledjadja Coal’s
     funding application in relation to the construction of the Project. The amount of the funding
     package offered by the Lending Syndicate was confirmed as being ZAR 4.2 billion (approx.
     A$ 417.9 million applying an ZAR:AUD exchange rate of 10.05:1).

     On 31 October 2019 (Quarterly Activities Report for the period ended 30 September 2019)
     the Company announced that it continued to work cooperatively with members of the
     proposed Lending Syndicate to finalise common terms which include the separate credit
     approved proposals received in late June 2019.

     Whilst Management, the Lending Syndicate and their respective advisors have been
     working tirelessly to negotiate a binding arrangement for project funding for construction
     of the mine for announcement ahead of the 2019 AGM (scheduled to be held today) this
     unfortunately has not been achieved. Whilst these negotiations remain incomplete, the
     Company is hopeful of being able to provide Shareholders with a further update within the
     coming week.


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, Greg Hunter, Michael Gray
Company Secretary: Mike Meintjes
                                                                                                                                    www.resgen.com.au
The Company’s target for reaching financial close to be in a position to issue a
drawdown notice on the Lending Syndicate has been revised to the end of March 2020.

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

On behalf of the Board
Lulamile Xate
Chairman


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:

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

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

Based on the information currently available to it, ResGen is aware that that PIC, Noble Group and
Altius Investment Holdings each have substantial shareholdings in ResGen.

Forward looking statements

This announcement contains certain forward-looking statements. Forward-looking statements
include those containing words such as “anticipate”, “believe”, “expect”, “project”, “forecast”,
“estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan”, “consider”, “foresee”, “aim”,
“will” and other similar expressions. Any forward-looking statements, opinions and estimates
provided in this announcement are based on assumptions and contingencies which are subject to

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change without notice and involve known and unknown risks and uncertainties and other factors
which are beyond the control of ResGen. This includes any statements about the terms on which
ResGen might obtain funding from the Lending Syndicate, or the timing for agreeing the terms of
any such funding. To the maximum extent permitted by law, the directors of ResGen, ResGen and
any of its related bodies corporate and affiliates, and their officers, partners, employees, agents,
associates and advisers disclaim any obligations or undertaking to release any updates or
revisions to the information in this announcement to reflect any change in expectations or
assumptions, do not make any representation or warranty, express or implied, as to the accuracy,
reliability or completeness of such information, or likelihood of fulfillment of any forward-looking
statement or any event or results expressed or implied in any forward-looking statement, and
disclaim all responsibility and liability for these forward-looking statements (including, without
limitation, liability for negligence).




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Date: 27-11-2019 10:01:00
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