Resource Generation says final member confirms participation in lending syndicate
JOHANNESBURG - Energy resources firm Resource Generation, which is dual listed on the Australian and Johannesburg stock exchanges, said on Monday 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 or approximately A$420 million at current exchange rates.
Negotiations for a funding package of R750 million required to construct the 44 km rail infrastructure linking the mine to rail, port and pipeline utility Transnet's main line were at an advanced stage, Resource Generation 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."
Resource Generation is developing the Boikarabelo coal mine in South Africa’s Waterberg region, which accounts for around 40 percent of the country’s currently known coal resources.
- African News Agency (ANA)