| Thu 4 Nov 2010, 11:01 | | RSG - Resource Generation Limited - Resource Generation to raise up to A$20 |
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RSG
RSG
RSG - Resource Generation Limited - Resource Generation to raise up to A$20
million through an equity raising
Resource Generation Limited
(Incorporated and registered in Australia)
(Registration number ACN 059 950 337)
Share code on the JSE Limited: RSG ISIN: AU000000RES1
Share code on the Australian Stock Exchange Limited: RES ISIN: AU000000RES1
("Resource Generation" or "the Company")
RESOURCE GENERATION TO RAISE UP TO A$20 MILLION THROUGH AN EQUITY RAISING
Resource Generation Limited is pleased to announce that the Company is
undertaking an equity capital raising to raise up to A$20 million at A$0.50 per
share. The Company may accept additional subscriptions of up to an additional
A$10 million. Citigroup Global Markets Australia Pty Limited is acting as Sole
Lead Manager and Bookrunner to the placement and is placing shares with
institutional and sophisticated investors today 4 November 2010.
The placement shares will be issued in two tranches, with an initial
unconditional tranche of 27.4 million shares to be issued on Wednesday, 10
November 2010 and the balance of placement shares to be issued conditional on
the receipt of shareholder approval. Resource Generation will seek shareholder
approval for the conditional tranche of the placement and ratification of the
unconditional tranche at a general meeting to be held on or about 13 December
2010.
Resource Generation has previously announced that it is bringing forward the
need to construct the rail link from the Boikarabelo mine to the existing rail
network in South Africa. The proceeds raised under the equity raising will be
used primarily for the rail link land acquisitions and access rights as well as
other expenditure for the Company`s Boikarabelo Mine in South Africa and for
working capital. Specifically, other uses are for associated costs for the rail
link, initial expenditure on power and water infrastructure and payments to BEE
partners for the increase of the Company`s shareholdings, in accordance with the
shareholders` agreements.
The construction of the rail link will need approval under the National
Environmental Management Act. In order to secure approval, the directors
believe that it is essential to acquire land and obtain land access rights
required for the rail link construction. The Company has recently concluded
negotiations for the purchase of land and easement agreements for two-thirds of
one of its preferred rail link routes.
The Board has also decided to invite shareholders to participate in the Resource
Generation Share Purchase Plan ("the SPP"). The SPP entitles shareholders in
the Company, irrespective of the size of their shareholding, to purchase up to
$15,000 worth of shares in the Company at A$0.50 cents per share, being the same
price paid by institutional shareholders in the share placement. The record
date for participation is 3 November 2010. Further details will be sent to
shareholders shortly.
Paul Jury, managing director, said: `This is an important step in providing
funds to unlock the development of the Boikarabelo mine. Securing the land
access rights is a key step in our ability to construct the rail link, which
itself is critical to opening up the export and domestic markets for our coal`.
Sydney, Australia
4 November 2010
Sponsor
Deloitte & Touche Sponsor Services (Pty) Limited
Date: 04/11/2010 11:01:46 Produced by the JSE SENS Department.
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