JOHANNESBURG – Energy resources firm Resource Generation (Resgen), which is listed on the ASX and the JSE, on Monday said the third and final member of the proposed lending syndicate for the construction of its Boikarabelo mine in South Africa had confirmed its participation in writing.
It said the combined proposed mine construction funding package offered by members of the proposed syndicate was now R4.2-billion.
Negotiations for a funding package of R750-million required to build the 44 km rail infrastructure linking the mine to rail, port and pipeline utility Transnet's main line were at an advanced stage, Resgen said.
"Finalisation of a binding term sheet for the rail link funding is expected to be a condition precedent attached to the proposed mine construction funding," it said.
"In the lead up to commissioning of the mine the company will also need to raise working capital currently estimated as being R500-million."
Resgen is developing the Boikarabelo coal mine in the Waterberg region, which accounts for around 40% of the country’s currently known coal resources.