ASX- and JSE-listed Resource Generation (Resgen) has agreed to accelerate discussions with the facilitator of alternative funding being sourced from a third party as a substitute or as a complementary participant in its lender syndicate.
This is owing to a short delay having arisen in scheduling the Credit Committee meeting surrounding the funding status of Resgen’s Boikarabelo coal mine, in South Africa, Resgen said in a statement issued on Monday.
Once approval has been received from the lender’s deal team Credit Committee, the lender’s proposal will be tabled for the November board meeting for approval.
Earlier this year, in the quarterly activities report for the September quarter, Resgen advised that it had received an indication from the lender’s deal team that one of the lenders in the lending syndicate was still progressing credit approvals and that their Credit Committee submission would occur during the week of October 29.
It was further indicated that should the approval be secured, the proposal would then be tabled for their board approval at the November meeting.
Subsequent discussions with the lender’s deal team have confirmed that this lender remains committed to the project from a technical, commercial and strategic perspective.
The Resgen board is seeking a clear acknowledgement of the lenders’ timeline to achieve Credit Committee and subsequent board approval, including the commitment to finalise all approval considerations before the Christmas break in South Africa.