| Thu 31 Mar 2011, 10:23 | | RSG - Resource Generation Limited - New BEE partners to facilitate |
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RSG
RSG
RSG - Resource Generation Limited - New BEE partners to facilitate
development of Resource Generation`s Boikarabelo coal mine
Resource Generation Limited
ACN 059 950 337
(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
("Resgen")
New BEE partners to facilitate development of Resource Generation`s
Boikarabelo coal mine
Resource Generation Limited, which is developing one of South Africa`s
largest remaining coal deposits, announced today that Fairy Wing Trading 136
(Pty) Limited (FWT), a company owned by a group of South African businessmen
and women with strong commercial and government relationships, has agreed to
acquire the 26% shareholding in Resource Generation`s Ledjadja joint venture
that was owned by its original BEE (black economic empowerment) partner.
Resource Generation will facilitate the acquisition through a loan of R80
million ($11.5 million) to FWT. The loan, which will be secured over FWT`s
shares in Ledjadja and repayable out of the first dividends due to FWT from
the joint venture, will be made available in three tranches. The first
tranche of R60 million will be paid during the next quarter following
finalisation of documentation for the Mining Right for Boikarabelo, which
will incorporate FWT as the BEE partner, the second tranche of R10 million
will be paid on 30 September 2011 with a third tranche of R10 million on 30
September 2012. The loan will be provided from Resource Generation`s existing
funds.
Paul Jury, managing director of Resource Generation, said: `We are delighted
that, as we progress towards the completion of our Boikarabelo mine,
scheduled for late 2013, we will have partners who are able to contribute
considerable value through commercial guidance and relationships. They have
already exhibited their ability to assist and the benefits that can result
from a constructive BEE partnership.`
As part of the transaction, the Ledjadja joint venture will assume Resource
Generation`s obligation to pay to Apex Resources Inc. a royalty of R2 per
tonne of coal shipped up to a limit of R30 million.
Sydney, Australia
31 March 2011
Contacts
Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Company Secretary on (02) 9376 9000
Media enquiries
Anthony Tregoning (02) 8264 1000
Sponsor
Deloitte & Touche Sponsor Services (Pty) Limited
Date: 31/03/2011 10:23:01 Produced by the JSE SENS Department.
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