JOHANNESBURG (miningweekly.com) – Coal project development company Resource Generation (Resgen) has signed a further extension of its facility agreement with international commodities group Noble Resources to borrow another $2.5-million.
The total facility made available to the company is now $34.7-million.
Noble is funding Resgen, while the ASX- and JSE-listed company seeks to raise cash to build the six-million-tonne-a-year Boikarabelo mine, in Limpopo.
The additional funds would be made available to Resgen subsidiary Ledjadja Coal in monthly tranches until July 31, 2018.
Resgen said that its initial facility of $20-million was repayable in instalments beginning on August 1, with a termination date of December 31, 2024.
The additional funds would be repaid from the proceeds of the first drawdown of any facility agreement for any project financing for the Boikarabelo project.
Resgen reported that potential funders of the mine development had started their various credit approval processes. The company said it expected to hear from two of the parties in the first week of April and that a third party had indicated that it would only conclude its credit process by the end of April.