Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
Share Code on the ASX: RES
Share Code on the JSE: RSG
(?Resgen? or the ?Company?)
Execution of non-binding Term Sheets for the funding of the Boikarabelo Coal
Resource Generation Limited (ASX:RES/JSE:RSG)(Company or ResGen) is pleased to
announce that its subsidiary, Ledjadja Coal Pty Ltd (Ledjadja Coal), has entered into two
non-binding term sheets, being the equity and debt term sheets (Term Sheets) with a
group of three potential funders (Lending Syndicate) for the funding of the Boikarabelo
Coal Project (Project).
The Company advises that it has appointed legal advisors and that work on drafting
definitive legal documentation based on the Term Sheets (conducted in tandem with
finalising the Term Sheets) is well progressed. The Company will keep the market informed
on progress in accordance with its continuous disclosure obligations.
Any binding commitment from the Lending Syndicate to fund the Project remains subject
to, among other things, the parties finalising definitive and legally binding documentation
recording the terms and conditions of the funding arrangements and subsequent
satisfaction of all conditions precedent to that funding being provided, including the
Company and each member of the Lending Syndicate obtaining all necessary internal,
regulatory and shareholder approvals.
The Company?s Interim Managing Director and Interim CEO, Leapeetse "Papi" Molotsane,
commented ?this marks a significant milestone in the process of securing the funding
required in order to be able to successfully bring the Boikarabelo Coal Mine into operation?.
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
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)
This funding package excludes the additional debt facility that is being arranged for ramp-
up working capital of ZAR 500 million (approx. A$ 49.7 million applying an ZAR:AUD
exchange rate of 10.05:1) and the additional debt facility that is being arranged for
construction of 44km?s of rail infrastructure to link the Project to the Transnet main line of
ZAR 750 million (approx. A$ 74.6 million applying an ZAR:AUD exchange rate of 10.05:1).
2. Composition of the Lending Syndicate
It can now be confirmed that the members of the Lending Syndicate are:
. Government Employees Pension Fund and the Unemployment Insurance Fund,
(both managed by the. Public Investment Corporation SOC Limited (PIC));
. Industrial Development Corporation of South Africa Limited (IDC); and
Noble Resources International Pte Ltd (Noble).
The Term Sheets contemplate that Ledjadja Coal will be the borrower in respect of any
funds advanced by the Lending Syndicate with the Company, Ledjadja Coal and a number
of the Company's other subsidiaries providing security for these advances.
3. Composition of the Funding Package
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