Emerging ASX- and JSE-listed energy company Resource Generation (Resgen) is securing the required regulatory approvals and translating the Mine Funding Package arrangement into a further amendment to the facility agreement for its Boikarabelo coal mine, in South Africa.
Boikarabelo's resources total 995-million tonnes, with coal reserves totaling 267-million tonnes.
The move follows in light of the current Covid-19 pandemic, where the virus has resulted in governments introducing significant physical distancing and travel restrictions creating significant economic uncertainty.
In light of these circumstances, Resgen on April 30 confirmed that it continued to engage with the mine funding package lenders to ensure continued commitment and support for the development of its coal mine.
Resgen also noted that its facility agreement was extended to an additional $2.2-million, which is to be made available in order to facilitate the satisfactory completion, or waiver of conditions precedent, for the mine funding package by June 30.
The first date for repayment of the facility agreement was amended to July 31, from March 31, and the terms of the Valu offtake agreement now need to be renegotiated to reflect the current market norms.
Further, Brian Harvey will join the company as CFO of Resgen and Ledjadja Coal as of June 1.
Ledjaja is Resgen’s fully empowered operating subsidiary.