| Tue 21 Sep 2010, 9:44 | | RSG - Resgen - Financial Effects of the Issue of New Ordinary Shares to |
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RESGEN
RSG
RSG - Resgen - Financial Effects of the Issue of New Ordinary Shares to
Integrated Coal Mining Limited
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
Share code on the JSE Limited: RSG
Share code on the Australian Stock Exchange: RES
ISIN Code: AU000000RES1
("Resgen")
FINANCIAL EFFECTS OF THE ISSUE OF NEW ORDINARY SHARES TO INTEGRATED COAL
MINING LIMITED
Notice is hereby given of the issue of 18,268,053 new Resgen ordinary shares
on 21 September 2010 to Integrated Coal Mining Limited ("Integrated Coal")
which is deemed to be a public shareholder ("the Transaction").
The new issue of ordinary shares will simultaneously be listed on the Official
List of the Australian Stock Exchange and the JSE Limited. The securities rank
pari passu with Resgen`s other issued securities. Resgen has the ability under
the ASX Listing Rules to make this placement.
Resgen signed a contract with Integrated Coal on Tuesday, 14th September 2010
whereby Integrated Coal will purchase thermal coal per annum for the next 20
years and Resgen has agreed to place 18 268 053 ordinary shares with
Integrated Coal at a share price of $0.575, which is at the closing market
price of Resgen on 10 September 2010.
The proceeds of the issue will be used primarily for the development of the
company`s Boikarabelo Mine in South Africa and for working capital
PRO FORMA FINANCIAL EFFECTS OF THE ISSUE
The unaudited pro forma financial effects of the issue, as set out below, are
based on Resgen`s results for the year ended 30 June 2010.
The unaudited pro forma financial effects are presented for illustrative
purposes only, to provide information on the impact of the issue. Due to the
nature of the unaudited pro forma financial effects, they may not give a fair
representation of Resgen`s financial position and the results of its
operations after the issue.
Resgen`s directors are responsible for the preparation of the unaudited pro
forma financial information.
The effects of the Transaction
Before the After the Percentage
Transaction - Transaction - change
30 June 2010 30 June 2010 %
(A$ cents) (A$ cents)
Earnings per share(1) (2.2) (2.1) (5)
Headline earnings per share(1) (2.2) (2.1) (5)
Net asset value per share(2) 54 49 (9)
Net tangible asset value per 54 49 (9)
share(2)
Number of shares in issue 164,412,477 182,680,530 11.11
Weighted average number of 11.90
shares in issue 153,541,119 171,809,172
Notes:
1. The amounts in the "Before" column represent the earnings and headline
earnings per share as disclosed in the financial results for the year
ended 30 June 2010. The amounts in the "After" column represent the
earnings and headline earnings per share on the assumption that the
Transaction was effective from 1 July 2009.
2. The amounts in the "Before" column represent the net asset value and net
tangible asset value per share as disclosed in the financial results for
the year ended 30 June 2010. The amounts in the "After" column represent
the net asset value and net tangible asset value per share based on the
financial results for the year ended 30 June 2010 adjusted for the
Transaction, had it been effected on 30 June 2010.
3. Transaction costs of $210,000 have been taken into account.
4. Proceeds will be used primarily for the continuing development of the
company`s Boikarabelo Mine in South Africa and for working capital. We
have not assumed interest was theoretically earned on this money from 1
July 2009.
Sydney, Australia
21 September 2010
Sponsor
Deloitte & Touche Sponsor Services (Proprietary) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000034/07)
Date: 21/09/2010 09:44:01 Produced by the JSE SENS Department.
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