[miningmx.com] — RESOURCE Generation, the energy resources company, on Wednesday said it has divested from its Tasmanian coal tenements to focus on its South African assets.
The company has sold its Tasmanian coal tenements through the sale of all its shares in Energy Investments and Tiger Coal for A$1.5m. The company has received a non-refundable deposit of A$150,000 from the purchaser.
In addition, Resource Generation will receive a royalty of A$1.20 per tonne on all coal sold from any mine developed on these tenements.
“Following exploration and analysis the potential for the development of a mine, while present, would require funding and personnel commitments that would detract management from its main asset, the proposed Boikarabelo coal mine in South Africa, where there are probable reserves of 745 million tonnes of coal on 35% of the company’s tenements,” the company said.
The Boikarabelo coal mine is located in the Waterberg region, which contains about 40% of SA’s remaining coal resources and is considered the main source of coal in the future.
Resource Generation are well advanced with planning the mine and have designed the coal handling and preparation plant.
