Resource Generation plans JSE listing

AUSTRALIA-listed Resource Generation plans to list on the Johannesburg stock exchange by the middle of this year to help raise funds to develop its Boikarabelo mine in South Africa.

Angie Tomlinson

The company said this morning it had decided to apply for a secondary listing on the JSE with the main aim to provide greater flexibility when raising finance to develop Boikarabelo.

The listing is expected to encourage South African investors to invest in the company.

“This is another important step forward in our plan to develop a large-scale coal mining operation,” managing director Paul Jury said.

“The listing will increase awareness of Resource Generation in the South African business community and is expected to open up additional sources of finance.”

The Boikarabelo tenements in the Waterberg region have probable saleable reserves of 603 million tonnes of coal, plus an indicated resource of 570Mt and an inferred resource of 1.7 billion tonnes.

Resource Generation expects the figures to increase following further drilling.

The company lodged a mining rights application in February this year.

As the South African Department of Mines and Energy normally takes about a year to award mining rights, Resource Generation intends to progress funding alternatives so it is ready to start construction when the rights are received.

Production is scheduled to start in January 2013.

Resource Generation was trading up 6.32c mid-morning today at 50.5c.