JOHANNESBURG (miningweekly.com) – South Africa-focused coal miner Resource Generation (Resgen) on Thursday revealed that it was in negotiations with FirstRand Bank, acting through its Rand Merchant Bank division, HSBC Bank - Johannesburg Branch, the Industrial Development Corporation, Noble Resources International and Export Finance & Insurance Corporation regarding a financing facility for the construction of its $480-million Boikarabelo mine, in Limpopo.
The 745-million-tonne project would include a $200-million coal handling and preparation plant, which would be the largest capital item.
The ASX- and JSE-listed company said it was proposed that if the funding facility proceeded, the existing loans entered into with Noble would become part of the above facility.
Negotiations had reached a mature stage and a term-sheet was being finalised on the expectation that it would provide all required remaining funding for the mine’s construction.
Consequently, if the proposed facility was made available, Resgen did not envisage the need for an associated equity raising. “If the proposed facility is not made available, we will continue to explore alternative funding arrangements,” it said in a statement.