The agreement is specifically with Resgen’s BEE subsidiary, Ledjadja Coal.
The parties have concluded a Heads of Agreement stating that the parties will negotiate on an exclusive basis a detailed Term Sheet to cover mining and related services over a period of 40 days.
Thereafter the parties will negotiate the terms and conditions of a Mining Contractor Agreement (MCA) within 15 days; and a formal appointment of SSMS as mining contractor will be confirmed with the parties’ execution of the MCA.
The Heads of Agreement applies until the MCA comes into force. The MCA will, at a minimum, be subject to the following conditions precedent:
. board approval by both parties of the formal agreement; and
. project funding being procured by the company.
This is significant progress towards securing final approval for the development of Resgen’s major project, the Boikarabelo mine in South Africa.
CEO of Resgen and Ledjadja operating subsidiary, Rob Lowe, says the company is advancing in parallel a number of inter-related agreements which together provide for long term risk management and financial confidence in the mine development.