Resource Generation has moved its ownership of in Waterberg One Coal (Pty) Ltd (WOC).
Currently WOC is owned 70% by Resource Generation and 30% by Lukale Mining Company (Pty) Limited (Lukale). Following the agreed transaction, WOC will be owned 74% by Resource Generation and 26% by Fairy Wing Trading 136 (Pty) Ltd (FWT), the same shareholding split as Ledjadja Coal (Pty) Ltd (Ledjadja), which owns the mining right for the Boikarabelo mine.
Paul Jury, MD, said: ‘This ownership change and alignment will enable a practical consolidation of our mining tenements to occur and make it easier to manage the operations of Boikarabelo. Our expectation is to open a separate pit at Waterberg One to supply domestic grade coal to Eskom and the independent power stations intended to be developed by Valu Investments Pte Ltd.’
For the sale of its shareholding, Lukale will receive ZAR25m in Resource Generation shares at $0.40 per share, subject to shareholder approval at the forthcoming Annual General Meeting, and ZAR20m cash. The shares will be held on the South African register and be eligible for sale on the JSE. FWT is being lent ZAR39m on commercial terms by Resource Generation to fund its acquisition of WOC shares.
WOC’s main prospecting right, Waterberg One, is contiguous with the Boikarabelo mining right and contains an indicated resource of 1,116.4 million tonnes and a measured resource of 865.5 million tonnes, including a probable reserve of 314.2 million tonnes.