RESOURCE GENERATION LIMITED – Market Update- Working Capital Funding

2019/03/15 08:40:00
SENS announcement for JSE listed company: RSG
                        

RSG 201903150011A
Market Update- Working Capital Funding

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?)

15 March 2019
ASX Announcement

Market Update- Working Capital Funding

Resource Generation Limited (ASX:RES) (Resgen or Company) would like to advise
that it has reached conditional agreement with Noble Group (Noble) to provide additional
working capital requirements to its partly owned subsidiary, Ledjadja Coal (Pty) Ltd
(Ledjadja Coal), to cover the projected needs through to 30 June 2019. This agreement
includes the following terms and conditions:

. extending the facility agreement dated 3 March 2014, as amended from time to
time, including most recently on 29 October 2018 (Facility Agreement) by up to
an additional US$2.5m;
. amending the first date for repayment of the Facility Agreement from 30 June
2019 to 30 September 2019;
. credit approvals from all members of the Lending Syndicate (see last status
update provided in the Quarterly Activities Report and Cashflow dated 29 January
2019) to be secured by 29 March 2019 and, if not forthcoming, ResGen to
facilitate a meeting between itself, Noble, the IDC and the other potential member
of the Lending Syndicate to agree a way forward;
. no later than 29 March 2019, Resgen to develop a high-level plan and timetable
on the potential feasibility of executing a small-scale mining operation at the
Boikarabelo Mine;
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 www.resgen.com.au
Interim CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
. Noble to have oversight of all expenditures and execution of new contracts
. executing full form documents effecting the necessary amendment to the Facility
Agreement;
. Resgen and Ledjadja Coal obtaining all necessary internal and regulatory
approvals or waivers in respect of all documents being entered into; and
. All costs associated with negotiation and documentation to be borne by Resgen
and Ledjadja Coal.

The Company is appreciative of this additional financial support from Noble.

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

Lulamile Xate
Chairman
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)
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 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) Ltd

PAGE 2

Date: 15/03/2019 08:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).
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