Energy resources company Resource Generation's (Resgen's) securities on the ASX and JSE will remain suspended, at the company’s request, until November 9.
This is an extension from the initially expected trading restart date of October 26.
Engineering News & Mining Weekly previously reported that the company’s decision to halt security trading followed its reliance on formalising an extension to the first repayment date under the facility agreement with Noble Group and securing access to additional working capital to cover the period through to financial close and the first drawdown of funds to develop the Boikarabelo coal project.
Noble Group has since confirmed an extension to the first repayment date to February 28, 2021, from September 30, 2020, subject to the completion of the legal documentation.
Noble Group, however, is unable to provide the company with additional working capital under the facility agreement.
In light of this development, Resgen said on October 22 that it needs time to develop an action plan to address the short-term funding requirement to cover the period through to financial close on November 30.
The action plan will also involve reconfirming with all lenders the status of the formal extension of the common terms agreement, and that satisfaction of the key conditions precedent by the end of October will enable them to seek their respective Credit Committee approvals by the end of November.