- Shares in Resource Generation (RES) have been placed in a trading halt pending an upcoming capital raise
- The company will remain in the halt until October 26 or when an announcement is made, whichever occurs first
- Resource Generation has revealed it is aiming to secure additional working capital to reach financial close for the development of the Boikarabelo Mine in South Africa
- In December 2019, the company and its subsidiary had entered two non-binding term sheets in regards for funding the mine
- Before the transaction is completed a number of conditions must be met such as the completion of a rail link funding agreement and the completion of a working capital facility
- Several conditions have already been met, however, Resource Generation is still finalising a working capital facility and logistics contracts
- Shares in Resource Generation last traded for 6.4 cents on October 21
Shares in Resource Generation (RES) have been placed in a trading halt pending an upcoming capital raise.
The company will remain in the halt until October 26 or when an announcement is made, whichever occurs first.
While the exact amount of the raise has not been disclosed, Resource Generation has said it is aiming to secure additional working capital to reach financial close for the development of the Boikarabelo Mine.
The Boikarabelo Mine is an open-cut coal mine that lies in the prospective Waterberg region of South Africa which hosts roughly 40 per cent on the country’s known coal resources.
Its coal resource stands at 995 million tonnes with annual production of 6 million tonnes of high-quality coal.
In December 2019, Resource Generation and its subsidiary Ledjadja Coal had entered 2 non-binding term sheets in regards for funding Boikarabelo.
Before the transaction is completed a number of conditions must be met such as shareholder approval, the completion of a rail link funding agreement, and the completion of a working capital facility.
In its June quarterly report, Resource Generation revealed it had satisfied a number of the conditions such as making significant process with the rail link funding.
The company is still finalising a working capital facility, finalising logistics contracts, and arranging a domestic coal sale contract with South African electricity company Eskom.
Shares in Resource Generation last traded for 6.4 cents on October 21.