Activities in preparation for the construction of the 38km rail link has commenced to connect Resource Generation’s Boikarabelo mine, in the Waterberg region of South Africa to the existing rail network.There are probable reserves of 744.8 million tonnes of coal on 35% of the tenements under Resource Generation’s control at the mine. Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum. Construction will entail the pad for the base of the construction camp, associated access roads and further infrastructure for the mobilisation of site activities. This preparation work is expected to assist the timely construction of the rail link.
Paul Jury, MD, said: “We see this as an important step towards facilitating the total construction of the Boikarabelo mine. This start will also enable site operational procedures to be tested and optimised prior to the start of full scale construction.”He also reminded shareholders that the 1 for 1 entitlement offer at $0.22 per share closes on Tuesday, 23 July 2013.