Resgen making slower-than-expected progress in securing Boikarabelo funding

JOHANNESBURG (miningweekly.com) – Dual-listed Resource Generation (Resgen) on Thursday said it continued to make progress on its funding plans for the Boikarabelo coal mine, in the Waterberg, but conceded that this was taking longer than anticipated.

“In particular, numerous hurdles have been cleared with the various proposed lenders’ internal credit approval processes and the proposed lenders have now notified the company of specific dates on which they expect to have received their respective full credit committee and board approvals for the funding package,” the coal miner said in a statement.

The last of these was scheduled to be received by the company during the first week in April.

The Resgen board is currently scheduled to meet on April 11 to consider a recommendation regarding the lenders’ credit approved term sheets.

As a further positive sign in progressing the mine development funding proposal, some of the proposed lenders have requested that the company enter into bilateral loan agreements before March 31.

These agreements would remain conditional upon various conditions precedent being satisfied, including final shareholder approval to be sought at an extraordinary general meeting.

Based on the timing notified by the proposed lenders, the company is now targeting an extraordinary general meeting towards the end of June.