JSE- and ASX-listed Resource Generation (Resgen) on Wednesday confirmed that the timeline for its credit committee meeting arranged by a funding syndicate member will not be met, as hoped, before the Christmas break.
Last month, Resgen advised that discussions with the lender’s deal team, which is one of three members of the proposed lending syndicate, had confirmed that the lender for the six-million-tonne-a-year Boikarabelo coal mine, in Waterberg, South Africa, remained committed to the project from a technical, commercial and strategic perspective; however, a short delay had arisen in scheduling a credit committee meeting.
Subsequently, management had been in regular contact with the lender’s deal team in anticipation that the credit committee and subsequent board approval could be finalised before the holidays, which it will not.
“This further delay highlights the imperative of progressing, in tandem, an alternative funding option with a party or parties as a substitute in the current proposed lending syndicate,” Resgen said on Wednesday.
The company said the delay would impact on the targeted date for financial close and the board would, therefore, focus on strategies to conserve cash or secure additional financial support.