JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed Resource Generation (Resgen) will, this month, table a submission with international commodities group Noble Resources, for the provision of additional funding for the anticipated working capital requirement arising from the development delay in Resgen’s six-million-tonne-a-year Boikarabelo coal mine.
Resgen, in March, borrowed another $2.5-million from Noble, bringing the total facility made available to the company to $34.7-million.
The company is, additionally, continuing to progress the development of measures to address the previously disclosed concerns of a bilateral senior loan facility between the Industrial Development Corporation (IDC) and Resgen subsidiary Ledjadja Coal.
The IDC in April approved Resgen’s request for R540-million in funding.
The company continues to engage with a number of interested parties, of which the IDC is the first, in funding the rail link required for the Boikarabelo mine.
With the support of the board, the energy resources company is working through mitigation and response options to ensure that the proposal delivered to the lender will be sufficient to support completion of its credit approval process.
Resgen further noted on Monday that while satisfactory progress is being made, and a meeting with the lender is contemplated within the next fortnight, the board will not be publishing further key dates relating to the credit approval process at this time.