04 Oct Resource Generation announces mining contract for Boikarabelo
Resource Generation (ASX:RES)(JSE:RSG) has announced that Stefanutti Stocks has been awarded the mining contract for its South African coal project.
The deal is yet to be concluded with Resource Generation (ResGen) and Stefanutti Stocks still to participate in negotiations for the full terms of the contract.
ResGen CEO Rob Lowe said it is an important step in securing final approval for the development of the Boikarabelo mine in the Waterberg region.
“The appointment is in line with our execution strategy to appoint contractors with good track records and strong balance sheets and thereby reduce the company’s exposure to operating risks inherent in a self-operated mine,” he said.
“This appointment is another important step towards validating the base case financial model and the financial close of our debt funding arrangements. This brings us one step closer towards the development of the Boikarabelo mine.”
ResGen recently secured US$400 million in funding from a South African-backed debt club and have since announced that Sedgman will take the mine construction contract, worth $141 million.