Key Achievements

Since late 2008 the Company has focused its strategy on discovering and defining a major coal deposit in the Waterberg Coalfield in South Africa, undertaken mine design and environmental impacts sufficient to lodge an application to commence mining.

Key Achievements

Secured prospecting rights
Defined 6 billion tonne resource
Probable reserve 745mt from 35% available area
Completed mine plan
Designed infrastructure

Defined transport, power & water solutions
Completed social & labour plan
Acquired surface land
Completed pre-feasibility study
Submitted mining rights application

Completed bankisle feasibility study
Received mining right
Obtained access for 36km rail link
Signed two long term export offtake contracts

Early in 2010 we lodged the mining rights application for Resource Generation’s Boikarabelo mine in the Waterberg region of South Africa. This was an important step forward in our plans to develop a large-scale coal mining operation. The South African Department of Mineral Resources awarded us the mining right in April 2011.

Since that time considerable progreess has been made on other fronts: a memorandum of understanding has been signed with Transnet Freight Rail to haul 6 million tonnes of coal per annum commencing from 1 July 2014, development consent has been received and a contract has been signed with Lephalale Municipal Council to upgrade its Marapong Sewage Works which can provide water for the second stage of the mine’s expansion.

Front end engineering designs have been completed for the mine infrastructure, the rail link and the coal handling and preparation plant. Mine plans and mobile equipment selections have also been completed.

Considerable interest has been expressed by a number of South African and global banks who have submitted indicative proposals for the debt portion of project funding. Once a contract has been signed with Transnet Freight Rail, these debt financing discussions are expected to progress to completion.