The sudden rise has prompted the ASX to issue a price query.
This recent gain continues a positive run for Resource Generation, with shares having risen 68% over the past three weeks to yesterday's intra-day high, up from a low of $0.205 in mid-August.
Responding to the ASX price query, Resource Generation said it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.
However, the company did note that it is aware of an easing in the selling pressure placed on its shares over the last month.
"An overseas institutional fund closed down and sold approximately 2 million shares and now has no shares remaining.
"In addition, a shareholder announced that it had ceased to be a substantial shareholder on 27 August 2012 and in so doing sold approximately 1.4 million shares in a one week period."
Both of these sell orders coincided with two recent positive announcements of a reduction in the estimated capital cost ofResource Generation's Boikarabelo coal mine in South Africa, and the acquisition of additional coal tenements from Exxaro Resources.
Resource Generation has reduced Boikarabelo's CAPEX by US$120 million to US$630 million.
The cost of Boikarabelo's planned 45 megawatt power station, for which tenders have been received, has been removed from the capital expenditure estimate for stage one of Boikarabelo's operations.
Instead, Eskom has agreed to commit to the supply of sufficient power for stage one of the mine's operation as early as 2014, after the first generating unit at its new Medupi power station is in commercial operation.
The company is also set to increase Boikarabelo's coal Resource by 31% with the acquisition of additional coal tenements from Exxaro, which host an Indicated Resource of 974.5 million tonnes of coal, excluding shale content.
The JORC Resource at Boikarabelo, one of South Africa's largest remaining deposits, will increase to a total of 4.09 billion tonnes, alongside the JORC Probable Reserve of 744.8 million tonnes, excluding 50% for shale content.
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