The Industrial Development Corporation of South Africa (IDC) has approved JSE- and ASX-listed Resource Generation’s (Resgen’s) request for R540-million in funding.
A bilateral senior loan facility agreement has been signed with Resgen subsidiary Ledjadja Coal.
The IDC is the first of three parties of a proposed funding syndicate.
Funding will be used for the development of Resgen’s six-million- tonne-a-year Boikarabelo coal mine.
Resgen interim MD and CEO Papi Molotsane said the company was delighted to secure the support of the IDC as the first step in seeking credit approvals from the proposed funding syndicate and would continue to work with the remaining two parties.
Resgen previously reported that it expected to hear from another party this month and the third proposed party by the end of April.