ASX-and JSE-listed Resource Generation (Resgen) has announced that Noble Resources International will no longer be providing loan funding to the company’s partially-owned subsidiary Ledjadja Coal.
The company had reached an in-principle agreement with Noble in mid-March to provide additional working capital to Ledjadja, in the form of an extension to a facility agreement between the companies reached in March 2014.
The in-principle agreement would have extended the facility agreement by up to an additional $993 000, bringing the total facility to $51-million. The extension of funds would have been made available in three instalments to cover an austerity operating budget for the period through to May 31.
The first tranche of this additional working capital had been provided by Noble in March, but subsequent advances for April and May have been suspended.
Resgen has confirmed that it has entered into urgent discussions and is considering all options including the appointment of administrators.
Resgen is developing the Boikarebelo coal mine, in South Africa’s coal-rich Waterberg region.
The coal resources and reserves for the Boikarabelo mine are held through Ledjadja and amount to 995-million tonnes and 267-million tonnes, respectively.
Stage 1 of the mine development targets saleable coal production of six-million tonnes a year.
Meanwhile, the company has also advised of the resignation of CFO Brian Harvey and COO Zirk van der Bank, effective April 30.