resgen.com.au
Resource Generation (ASX: RES) is developing one of South Africa’s largest remaining coal deposits, with the company's focos on the Boikarabelo tenements, in the Waterberg region of South Africa.
The strategy for the company is to develop high grade “energy” related resources into viable and competitive mining operations. Accelerated shareholder value will be delivered through the delivery of physical mining activity.
Resource Generation gains key approval in Boikarabelo coal project development
Resource Generation (ASX: RES),which is developing one of South Africa’s largest remaining coal deposits, has
received Section 11 approval today from the Department of Mineral Resources in South Africa to increase its shareholding in the Ledjadja tenements from 49% to 74%.
The Ledjadja tenements, which form part of Resource Generation’s Boikarabelo mine development, contain a probable reserve of 302.4 million tonnes in 16% of the shallow coal bearing area plus an inferred resource of 1.7 billion tonnes in 84% of the area.
Including the Waterberg One coal tenements, the entire Boikarabelo project contains 603.3 million tonnes of probable reserves plus an indicated resource of 569.5 million tonnes plus an inferred resource of 1.7 billion tonnes.
Resource Generation’s ability to increase its shareholding to 74% is subject to a minimum expenditure condition that has already been met, so the company’s shareholding will now increase to 65%. The additional 9% is subject to other arrangements which will be addressed in the near future.
Paul Jury, managing director, said: ‘I am delighted to receive this approval which provides another step forward in the development of the Boikarabelo project and demonstrates the ability to overcome perceived sovereign risk.’
