Resgen issues quarterly statement

Johannesburg - Resource Generation [JSE:RSG] has issued a Sens statement regarding its quarterly report for the three months ended 31 December 2016.

Resgen (as the company is known) is developing its Boikarabelo Coal Mine in the Waterberg region of South Africa. This region accounts for 40% of the country's remaining identified coal resources. Based on a new business model for the Boikarabelo Coal Mine, the intent is to service both export customers and domestic power stations.

Completion of the project funding continues to be company's highest priority. The company held its annual general meeting in Brisbane on 23 November 2016 where the CEO provided details on the current status of the project's material contracts and funding. All resolutions put to the AGM were passed.

The company has received, and is presently considering, a proposal to increase the existing unsecured loan facility (now fully drawn down) as announced to the market in its quarterly report for the three months ending on 31 March 2014. The provider of the facility has offered the facility increase in order to provide the company with additional working capital for the period up to the first drawdown under the proposed project funding arrangements.

The export quality product has an average yield of 23.68% and the domestic power station product has an average yield of 19.61 %. This equates to an overall average yield of 43.3%. The run of mine (ROM) of 616.85 million tonnes equates to a life of mine in excess of 40 years at an annual production rate of 15.12 million tonnes and sales for a similar period at a rate of 6.55 million tonnes per annum.

The company is in the process of relinquishing PR720/2007, over the properties Lisbon and Zoetfontein, as these are distant from the Boikarabelo site and contain minimal resources.