Resource Generation (Resgen) has reached a conditional agreement with Noble Group for the provision of $4.7-million in additional working capital for Resgen’s subsidiary Ledjadja Coal to meet its financial needs up to June 30.
Resgen will continue to work to secure project funding.
Under the terms of the agreement, Resgen will have to secure credit approvals from all members of its lending syndicate by March 29. If that does not occur, it will be required to meet with Noble, the Industrial Development Corporation of South Africa and another potential lender to decide on a way forward.
Further, the company is also required to develop a high-level plan and timetable for a possible small-scale mining operation at Boikarabelo.
Meanwhile, the company recorded a net loss of $6.7-million for the six months ended December 31, 2018.