Resgen secures extra funding amid Covid-19 uncertainty
The coal development company says its lender Noble Group has agreed to an additional R41m in working capital
ASX and JSE-listed coal group Resource Generation (Resgen) said on Thursday it had agreed in principle to receive $2.25m (R41m) in additional working capital from its lender, Noble Group, as it battles uncertainty from the Covid-19 outbreak.
The working capital component of its facility agreement with Noble will be $29.15m plus interest after the extension, the group says, as it continues to monitor the weakening rand, which has lost about a fifth of its value against the dollar so far in 2020.
Resgen is developing a substantial coal mine, Boikarabelo, in the Waterberg, which has been under development since 2011.
The in-principle agreement includes amending the first date for repayment of the facility agreement by four months to the end of July.
“The company is appreciative of the continued financial support from Noble and looks forward to a continuing strong partnership with Noble,” said Resgen chair Lulamile Xate.