ResGen Announces Execution Of Sixth Deed Of Amendment And Restatement

  • May 22, 2019 AEST
  • Team Kalkine
ResGen Announces Execution Of Sixth Deed Of Amendment And Restatement

An emerging coal producer, Resource Generation Limited or ResGen (ASX: RES) is headquartered in Australia and is currently engaged in the development of Boikarabelo Coal Mine in Waterberg region (located in South Africa). Forty per cent of the country’s currently known coal resources are present in Waterberg. ResGen holds its interest in the Boikarabelo Coal Mine project through its subsidiary, Ledjadja Coal (Pty) Ltd.

In an announcement today, the company announced the execution of the Sixth Deed of Amendment and Restatement to the Facility Agreement that was initially signed between Noble and Ledjadja in March 2014. Under the Facility Agreement, ResGen is the guarantor of Ledjadja's obligations. ResGen entered into a conditional agreement with Noble Resources International Pte. Ltd. to provide additional working capital requirements to Ledjadja on 15th March 2019.

The key terms of the amendments have been documented in the form of the Sixth Deed of Amendment and Restatement, which has been executed by Noble and ResGen.

The key terms of the amendments include the following:

  • The current Working Capital Facility to be extended by US$2.5 million, taking the total commitment to US$44.4 million.
  • The interest rate of 10.75 per cent per annum with penalty interest will be applicable on a default.
  • The first date for repayment of the Facility has been changed to 30th September 2019 from 30th June 2019.
  • Securing the additional funds by the existing Share Pledge over ResGen's interest in 74 per cent of the shares in Ledjadja.
  • Certain conditions are to be satisfied in order to commence drawdown of further funds under the Facility Agreement.
  • All of the further advances made by Noble under the Facility Agreement to be repaid with accrued interest out of the first advance received under any project funding arrangement.
  • ResGen to convene a general meeting of its Shareholders before 31st December 2019.
  • ResGen or its subsidiaries to bear all the costs associated with negotiation and documentation.

ResGen recently released its quarterly report for the three months ending 31st March 2019. The following are the key highlights of the company’s quarterly report for the March 2019 quarter:

  • ResGen continued to pursue the remaining credit approvals from the Lending Syndicate post receiving confirmation that the due diligence matters had been resolved.
  • ResGen signed a conditional agreement with Noble Group on 15th March 2019.
  • The company had a cash balance of $1.43 million at 31st March 2019.
  • The company held MPT 169 MR (74%) and PR678/2007 (74%) mining tenements at the end of the quarter.

The company’s stock is currently trading higher on the Australian Securities Exchange, settling the day’s trade at AUD 0.105 (on 22nd May 2019), up by 7.14 per cent relative to the last close. Around 631,650 number of RES shares were in trade today, and the stock reported a market cap of AUD 56.98 million.  The stock has generated a YTD return of 12.64 per cent while it delivered a negative return of 18.33 per cent over the last one month.


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