JOHANNESBURG (miningweekly.com) – As work continues at its Boikarabelo coal mine, in the Waterberg, dual-listed Resource Generation (Resgen) is considering a proposal to increase an existing unsecured loan facility.
The provider of the three-year-old facility, which was now fully drawn down, had offered Resgen an increase in the facility to provide the company with additional working capital for the period up to the first drawdown under the proposed project funding arrangements, the company said in an update to shareholders on Monday.
“The company expects to finalise its consideration of the proposed increase during February and will update the market when this occurs,” Resgen noted.
The group, which last week reported an updated coal resource and coal reserve estimate for Boikarabelo, held cash in bank of $4.5-million as at December 31.
Meanwhile, work continued at Boikarabelo during the quarter to December to ensure project readiness for the mobilisation of the engineering, procurement and construction contractors.
“In parallel, significant progress has been made towards completion of the material contracts with Transnet Freight Rail (logistics), Sedgman (the coal-handling and preparation plant and operation and maintenance contracts) and Stefanutti Stocks Mining Services (mining contract), besides others,” Resgen said.
The contracts remain subject to conditions precedent to the financial close of funding with the financing syndicate.
“The completion of the project funding continues to be the company’s highest priority,” Resgen concluded.