ASX- and JSE-listed coal miner Resource Generation (Resgen) on September 10 said its lenders' project team will not approach their credit committees until three conditions precedent are met.
This follows after Resgen subsidiary Ledjadja Coal, which is developing the Boikarabelo mine, on September 4 formally requested that the lenders 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.
The lenders have indicated that they expect the execution of a binding ramp-up working capital facility agreement; the execution of a binding and fully funded mining services contract; and the execution of a domestic back-to-back offtake agreement with Noble Group, to meet the Eskom black economic empowerment procurement conditions, to be concluded before they will approach their credit committees.
Resgen said that, based on significant progress achieved to date in the negotiations, its management expected the execution of both a binding ramp-up working capital facility agreement and fully-funded mining services contract to be completed by the end of October.
Further, it said that commodities trading company Noble Group had indicated that it expects to have the offtake agreement concluded by the end of October as well.
Resgen stated that, based on the reasonable assumption that these conditions precedent could be met by the end of October, the lenders would then be in a position to approach their various credit committees during the month of November.
Resgen's management plans to approach the lenders on the revised target timeline to seek a further extension of the long stop date.