JOHANNESBURG (miningweekly.com) – JSE- and ASX-listed Resource Generation (Resgen) has confirmed the payment of $2.74-million through its second drawdown under the extended facility agreement with Noble Resources International, while work continues to secure project funding.

In March, Resgen obtained an extension of its $8.4-million facility agreement with Noble to fund the operations and development of the Boikarabelo coal mine, in Limpopo, being progressed by Resgen subsidiary Ledjadja Coal.

The additional funds are being paid in three tranches until September, while Resgen aligns its engineering, procurement and construction (EPC) and logistics contracts, locks in the project costs and derisks an important element of a final debt funding agreement for the project.

Resgen on Wednesday said it was now working on wrapping up a small number of items identified during an all-party meeting last week that needed to be dealt with or produced for the lenders to start their respective credit approval processes.

“The purpose of the meeting was to review all material EPC and logistics contracts and to address matters outstanding from the lenders’ legal due diligence,” Resgen chairperson Denis Gately told shareholders in an update.

An updated financial model, the term sheet and the finalisation of the funding terms of the rail link are expected to be concluded or received by third parties by the end of June or during July, with all outstanding items to be delivered to the lenders no later than July 31.

This would allow the lenders to approach their credit approval bodies, he added, pointing out that the credit approval processes were estimated to be completed within two months from the start.

“The meeting was positive and the company is encouraged by the support for the project shown by the lenders,” Gately concluded.