The proposed facility under negotiation is intended to provide the total funds required to complete the construction of the mine to the point of commissioning, but does not include the costs of constructing the rail link or the costs of ramp-up to full production of coal.
The proposed lenders are now currently engaged in their respective internal credit approval processes. Once those credit approvals have been obtained, the parties propose to execute terms sheets recording the principal terms of the proposed funding.
The terms sheets have been drafted based on negotiations between the proposed lenders and ResGen.
Although the credit approval processes are on-going, at this stage the company is unable to forecast with any certainty when credit approvals and a signed terms sheet will be obtained from all proposed lenders, but a further announcement will be made when that occurs.
ResGen has received legal advice that this funding proposal will require approval of shareholders.
As such, an independent expert based in Australia has been identified and will be appointed to prepare a report to shareholders in respect of the proposal when terms sheets have been executed.
An extraordinary general meeting of shareholders will then be called for the purpose of considering the funding proposal.