Ledjadja Coal, subsidiary of ASX- and JSE-listed Resource Generation (Resgen), has entered into two nonbinding term sheets for equity and debt with a group of three potential funders to fund the Boikarabelo coal project, in South Africa’s Limpopo province.
Resgen has appointed legal advisers to draft definitive legal documentation based on the term sheets.
Resgen interim CEO Leapeetse Molotsane said the term sheets mark a significant milestone in the company’s process of securing funding to successfully bring the coal mine into operation.
Meanwhile, the company on Tuesday reached a conditional agreement with Noble Resources International, whereby Noble will provide it with up to $2.5-million in additional working capital.
This follows soon after Ledjadja signed a R10-billion take-or-pay coal transport agreement with freight logistics group Transnet. Under the terms of the agreement, Transnet will transport 3.6-million tonnes a year of coal from the Boikarabelo mine to Richards Bay Terminal Grindrod, in KwaZulu-Natal, for export.