ASX- and JSE-listed Resource Generation (Resgen) plans to continue pursuing a tandem approach to finding a funding solution for the development of its Boikarabelo coal mine, in South Africa, but warned that further delays are likely.
Delays, the energy resources company pointed out on Monday, will likely take place where due diligence activities associated with a potential new participant need to be accommodated.
This follows after Resgen recently experienced an unexpected delay in securing the credit approval from one of the members of a proposed lending syndicate.
The company was informed by the lender’s deal team that the delay related to a broad-based internal review of the lender organisation’s environment, social and governance investment criteria.
At the time, Resgen’s board agreed to intensify engagement with this lender, given the advanced status of the submission, while at the time triggering a contingency plan based on interest that had been expressed by third parties.
Engagement with this lender continues, Resgen said on Monday, while the company continues to work with the syndicate of lenders to achieve final approvals as soon as practically possible.
However, the company said it was imperative for the board to explore the interest expressed by third parties.
Early indications, meanwhile, are that it may be possible, subject to due diligence, to structure involvement by a third party as a substitute funder in the syndicate or as a complementary participant in the syndicate.