Resource Generation Limited (ASX: RES) - Coal

Resource Generation (ASX: RES) is currently developing the Boikarabelo coal mine in the Waterberg region of South Africa. According to Resource Generation, first coal production is expected in the first half of 2016 (http://resgen.com.au/).

Talon currently owns a royalty of ZAR2 (two South African Rand) per tonne of coal extracted and sold from the area covered by Mining Right MPT 15/2012 MR at the Boikarabelo coal mine. This royalty is capped at ZAR30-million (approximately CDN$3-million), and must be paid to Talon within 6 years of the commencement of coal production from the license area.