05 Dec ResGen receives funding boost for South African coal project
Dual-listed Resource Generation (ResGen) has announced that its subsidiary Ledjadja Coal has executed binding agreements for a syndicated loan facility of R4.2 billion to advance the Boikarabelo coal mine in South Africa.
ResGen’s lending syndicate is comprised of two South African government-backed entities, the Industrial Development Corporation (IDC) of South Africa and commodities trader Noble Resources International.
Group interim managing director and interim chief executive Leapeetswe ‘Papi’ Molotsane said the funding announcement was significant for the construction of the mine, which has a JORC estimate of 995 million tonnes.
“This marks a significant milestone in the process of securing the funding required to be able to successfully bring the Boikarabelo Coal Mine into operation,” said Molotsane.
Molotsane added that Ledjadja Coal would be the borrower in respect of any funds advanced by the lending syndicate with the company, with Ledjadja and a number of its other subsidiaries providing security for these advances.