ASX-listed Resource Generation (Resgen) says its subsidiary Ledjajda Coal has formally requested that the lenders it is negotiating with either defer a limited number of conditions precedent to a date post the financial close on September 30, or that they submit viable alternative solutions with respect to those specific conditions precedent, which could be satisfied before financial close.
Resgen and Ledjadja previously extended the long stop date for its principal binding agreements for the funding of construction of the Boikarabelo coal project, in South Africa’s Limpopo province, to September 30.
The amended and restated common terms agreement has been finalised and confirmed in principle by all lenders and is at various stages of being formally executed under their governance processes for the project funding agreements.
Ledjajda has made significant progress with respect to satisfying the majority of the conditions precedent to financial close, says Resgen.
It adds that the lenders will be approaching their various internal committees to discuss the request made by Ledjadja.
Resgen warns that there is a risk that one or more of the lender governance bodies will not accept the proposal by Ledjajda; however, the company remains optimistic that the submission will receive due consideration in light of the pressing need to achieve financial close in the short term.