JOHANNESBURG (miningweekly.com) – Dual-listed Resource Generation (Resgen) will increase its interest in Waterberg One Coal (WOC) to 74%, while its black economic-empowerment partner in the Boikarabelo mine, Fairy Wing Trading (FWT), will acquire the remaining 26% stake.
WOC, which is currently 70%-owned by Resgen and 30%-owned by Lukale Mining, holds the Waterberg One prospecting right that is contiguous with the Boikarabelo mining right area.
In exchange for selling its stake in WOC, Lukale would receive R25-million worth of shares in Resgen and R20-million in cash.
Resgen will also loan FWT R39-million on commercial terms to fund FWT’s acquisition of WOC shares.
The deal remains subject to shareholder approval.
“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,” Resgen MD Paul Jury said.