Interim Fund Raising and Offtake Contract Signed Resource Generation has agreed to issue a secured debenture to Noble Resources International Pte. Ltd. (a wholly owned subsidiary of the Noble Group) (Noble) to raise $20 million cash to augment available funding and progress construction activities at its Boikarabelo coal mine. Funds are expected to be received by 9 January 2013 and are on normal commercial terms. The debenture will be repayable in December 2013. The raising has been necessary due to a delay in the completion of the project debt finance from the Company’s initial expectations.
An export coal offtake contract for 2.5 million tonnes of coal has also been entered into with Noble, with supply after production commences at the Boikarabelo mine. Coal prices will be set by reference to an internationally recognised index at the time of each shipment.
Resource Generation and Noble have agreed to have good faith discussions with regards to a strategic marketing alliance for Boikarabelo coal.
Noble Group is a global supply chain manager of agricultural and energy products and metals, minerals and ores. Noble Group is listed in Singapore (SGX:N21), with headquarters in Hong Kong, and operates from over 140 locations.
Good luck to all that hold RES
RES Price at posting:
32.5¢ Sentiment: LT Buy Disclosure: Held
