Resource Generation Limited has announced on 5 December 2019 that along with its majority owned subsidiary, Ledjadja Coal (Pty) Ltd, it had executed principal binding agreements for the funding of the construction of the Boikarabelo Coal Project. The members of the Lending Syndicate comprised of the Government Employees Pension Fund and the Unemployment Insurance Fund, Industrial Development Corporation of South Africa Limited and Noble Resources International Pte Ltd. ResGen now announced that “Due to delays in satisfying certain Conditions Precedent to reaching Financial Close for first drawdown under the Mine Funding Package, the Company has been in the process of securing formal sign off of the extension of the Common Terms Agreement. Whilst seeking these formal sign offs the Company has now been advised by the IDC that after completing a due diligence investigation for the purpose of the extension a view has been formed that the market conditions under which the Boikarabelo Coal Project would operate have deteriorated materially. Based on the findings, the IDC’s Special Credit Committee resolved that IDC should not grant an extension of the Common Terms Agreement. Further, the IDC Special Credit Committee also decided to cancel all previously approved facilities under the Mine Funding Package.”

The Company is now seeking an urgent meeting to discuss this development with Noble, being the secured lender under the Facility Agreement with Ledjadja Coal (Pty) Ltd dated 3 March 2014 (as amended).