| Thu 11 Nov 2010, 7:05 | | RSG - Resource Generation Limited - Financial effects of the equity placement |
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RSG
RSG
RSG - Resource Generation Limited - Financial effects of the equity placement
of new ordinary shares
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 EQUITY PLACEMENT OF NEW ORDINARY SHARES
Notice is hereby given of the issue of 27,400,000 Resgen ordinary shares on 11
November 2010 following a placement to institutional and sophisticated
borrowers("the Transaction")at a price of $A0.50 per share.
The new issue of ordinary shares will simultaneously be listed on the Official
List of the Australian Stock Exchange ("ASX") and the JSE Limited ("JSE"). The
securities rank pari passu with Resgen`s other issued securities. Resgen has
the ability under the ASX Listing Rules to make this placement.
The proceeds of the issue will be used primarily for the rail link land
acquisition and access rights associated with the development of the company`s
Boikarabelo Mine in South Africa and for working capital.
PRO FORMA FINANCIAL EFFECTS OF THE ISSUE
The unaudited pro forma financial effects of the issue, as set out below, are
based on Resgen`s results for the year ended 30 June 2010. The number of
shares on issue before the Transaction reflect the quantum as notified to the
ASX and JSE on 21 September 2010 following the placement of 18,268,053
ordinary shares to Integrated Coal Mining Limited.
The unaudited pro forma financial effects are presented for illustrative
purposes only, to provide information on the impact of the issue. Due to the
nature of the unaudited pro forma financial effects, they may not give a fair
representation of Resgen`s financial position and the results of its
operations after the issue.
Resgen`s directors are responsible for the preparation of the unaudited pro
forma financial information.
The effects of the Transaction
Before the After the Percentage
Transaction - Transaction - change
30 June 2010 30 June 2010 %
(A$ cents) (A$ cents)
Earnings per share(1) (2.1) (1.8) 14.2
Headline earnings per share(1) (2.1) (1.8) 14.2
Net asset value per share(2) 49 42 (14.3)
Net tangible asset value per 49 42 (14.3)
share(2)
Number of shares in issue 182,680,530 210,080,530 15.00
Weighted average number of
shares in issue 171,809,172 199,209,172 15.90
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 but after the earlier placement to
Integrated Coal Mining Limited as disclosed to the JSE on 21
September 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 but after the earlier
placement to Integrated Coal Mining Limited as disclosed to the JSE
on 21 September 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 $150,000 have been taken into account.
4. Proceeds will be used primarily for the rail land link acquisition
and access rights and 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
11 November 2010
Sponsor
Deloitte & Touche Sponsor Services (Proprietary) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000034/07)
Date: 11/11/2010 07:05:01 Produced by the JSE SENS Department.
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