Finance Delayed Again??, page-44

RES received credit-approved offers of project finance in March 2013 but PJ rejected them as being unacceptable to the company. At the same time, PJ was jumping into bed with Noble by way of off-take contracts, $100M+ loan facilities and a substantial shareholding in RES. Because the finance offers were rejected, the resulting 2013 cap raise brought PIC & Altius on board. In a strange twist of events, it would ultimately be PIC, Altius & Noble that ousted PJ in order to install their own representatives to the board and gain full control of the project.

In retrospect, PJ should have accepted the credit offers in 2013 and today Boikarabelo would be in production. Ironically, we lauded PJ at the time for playing hard ball with the debt club in the name of preserving shareholder wealth. I wonder how much influence Noble had over PJ in making his decision to reject finance?



Having painstakingly watched this story unfold over the past decade, first as a shareholder and now as a spectator, I am becoming increasingly skeptical of the current Board's motives and future intentions for Resource Generation as a publicly listed company.

Admittedly, Boikarabelo is a huge project, but for a country in the midst of an electricity crisis where 'load shedding' and 'rolling blackouts' are becoming the norm, you would think that a massive, low-cost coal mine with all regulatory approvals in place and close to existing rail networks and water sources would be a top priority.