Resgen gets extended repayment date

The agreement is effectively an extension to a facility agreement between the companies dated March 2014.

Extending the facility agreement by up to an additional $920 000, to a total of $50.7-million, will cover an austerity operating budget for the subsidiary through to February 28, 2021.

During this period, measures to ensure the continued solvency of the Resgen Group and alternatives for progressing development of the Boikarabelo project will be considered in cooperation with Noble.

Resgen clarifies that the additional funds are only to be used for amounts provided in the austerity operating budget and are not to be used to engage external consultants in connection with securing alternative project financing without express approval.

The first date for repayment of the facility agreement had been moved from September 30 to February 28, 2021.

Resgen approached Noble for an extension of funds after being advised of the withdrawal of the Industrial Development Corporation of South Africa from a mine funding package that was approved by shareholders on April 7.

The Boikarabelo coal resource stands at 995-million tonnes, and is located in Magaliesburg, South Africa.