https://www.miningweekly.com

Resgen to raise A$62.6m for Boikarabelo, secures funding for rail link

28th June 2013

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed Resource Generation (Resgen) on Friday announced that it would seek to raise A$62.6-million to start major construction work at its Boikarabelo mine, in South Africa’s Waterberg region.

The company would raise the funds through a nonrenounceable entitlement offer of about 284.7-million shares at A$0.22 a share.

Commitments had already been received from three independent parties – Barsington, Value Investments and Altius Investment Holdings – that are interested in taking up about 80% of the shares.

Further, Resgen said it was negotiating the offer of equipment finance, coal handling and preparation plant (CHPP) funding alternatives and was in discussions with ten banks with a view to augmenting the debt facility provided through the Noble Group.

Should the entitlement offer not achieve full subscription or take-up of the shortfall, the company plans to prioritise the expenditure in areas that provide maximum leverage in de-risking project completion.

Meanwhile, Resgen also announced on Friday that it had secured a $55.3-million loan with Noble Resources, a subsidiary of Noble Group, for the construction of the 38 km rail link from the Boikarabelo mine to the existing Transnet Freight Rail network.

The company stated that the rail link was one of the longer lead-time items in the construction of the mine.

“Commencing the rail link is a major catalyst for the construction of the Boikarabelo coal mine. The loan enabling the works is also another innovative example of our efforts to finance construction and mitigate completion risk.

“The knock-on effect of this construction activity is significant in terms of physical site establishment, as well as providing a stimulus for further funding of the remaining construction,” commented Resgen MD Paul Jury.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Projects

Image of lithium ore stockpile
Lithium conversion plant, Australia
Updated 1 hour 23 minutes ago By: Sheila Barradas
Aerial view of the Amapá mine
Amapá iron-ore project, Brazil
Updated 1 hour 23 minutes ago By: Sheila Barradas

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.154 0.189s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: