Currently, Lukale Mining Company owns the remaining 30% in WOC.
Following the transaction, Resgen will own 74% stake, while South Africa-based Fairy Wing Trading (FWT) will acquire the remaining 26% stake.
Resgen managing director Paul Jury said this ownership change and alignment will enable a practical consolidation of the 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 Pte Ltd," Jury added.
In order to increase the stake, Resgen will pay Lukale ZAR25m ($2.4m) in shares at $0.40 per share, subject to shareholder approval, and ZAR20m ($1.92m) cash.
WOC’s primary prospecting right, Waterberg One, is contiguous with the Boikarabelo mining right and contains an indicated resource of 1,116.4 million tons and a measured resource of 865.5 million tons, including a probable reserve of 314.2 million tons.
