ARCHIVE

ResGen finds Noble funding

RESOURCE Generation has established a strategic partnership with Noble Group, Asia's largest dive...

Staff Reporter
ResGen finds Noble funding

Through the agreement, Noble would acquire a 7.5% shareholding in ResGen for $A8.5 million ($US8.9 million) at 40c a share for a total of 21.35 million shares.

The partnership also increases Noble's offtake from the Boikarabelo project which is one of South Africa’s largest remaining coal deposits.

It could increase tonnage to as much as 2.5 million tons per annum over a 35-year period.

“This agreement gives Resource Generation a strong strategic partner as we continue with the construction of Boikarabelo’s infrastructure,” ResGen managing director Paul Jury said.

“Noble Group’s investment and loan facility and its increased offtake commitment demonstrate the group’s confidence in the mine’s potential.

“They also provide a platform for continuing to secure additional funding for the project.”

In addition, Noble has agreed to provide ResGen with a secured loan facility of up to $US123 million on normal commercial terms.

Noble was also appointed the project's supply chain manager and exclusive marketing agent.

The news comes after ResGen last month announced it was considering alternative funding after it received credit-approved offers of project finance from its current financier that deviated from an agreed term sheet.

The Boikarabelo project is expected to produce an initial 6Mtpa, split equally between export and domestic coal.

It has probable reserves of 744.8Mt of coal on 35% of the company’s tenements.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production