ASX/JSE Resource Generation has announced that, along with its subsidiary Ledjadja Coal, it has entered two non-binding term sheets, being the equity and debt term sheets with a group of three potential funders (Lending Syndicate) for the funding of the Boikarabelo Coal Project.
Resource Generation also advises that work on drafting definitive legal and binding documentation based on the Term Sheets is well progressed.
Resource Generation is pleased to announce that the principal binding agreements for the funding of the construction of the project by the Lending Syndicate have been executed.
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The key terms of the Project Funding Agreements essentially mirror the terms set out in the Term Sheets summarised in the company's announcement of 3 December 2019, including with respect to having the provision of funding being conditional on satisfaction or waiver of a number of conditions precedent as described in that announcement.
Interim MD and Interim CEO of Resource Generation, Leapeetswe "Papi" Molotsane, comments:
“The transition of the non-binding term sheets into legal agreements is a most important milestone. Subject only to satisfactory completion of the conditions precedent, funding for the construction of the remainder of the mine is now assured.
"The agreements are the product of a lot of hardwork and we are grateful for the drive and commitment of the Lending Syndicate and the professional advisors on both sides of the transaction in converting the agreed indicative funding terms into full form binding agreements.”
“Stakeholders can rest assured that we have been working on the conditions precedent in parallel with the legal agreements and substantial progress has already been made. We are now focused on completing these tasks as quickly as is possible.”