Resource Generation Limited (ASX:RES/JSE:RSG)(Company) provides the following market update.
Further to the ASX announcement to shareholders dated 16 April 2018 with regard to the execution of a Bilateral Senior Loan Facility between the IDC and Ledjadja Coal, and the follow-up advisory dated 10 May 2018, Resgen advises that it is continuing to progress the development of measures to address the previously disclosed concerns raised by one of the lenders.
Management, with the support of the Board, is working through mitigation and response options to ensure that the proposal delivered to the lender will be sufficient to support completion of their credit approval process.
While satisfactory progress is being made, and a meeting with the lender is contemplated within the next fortnight, the Board will not be publishing further key dates relating to the credit approval process at this time. The Board remains committed, however, to keep the market informed in accordance with its continuous disclosure obligations.
During early June 2018, the Company plans to table a submission with Noble covering a request to provide additional funding for the anticipated working capital shortfall requirement arising from the delay. Rail Link Funding The Company continues to engage with a number of parties interested in funding the rail link required for the Boikarabelo Mine.
RES Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
