ResGen welcomes new investor
PERTH (miningweekly.com) – Dual-listed Resource Generation (ResGen) has sold a 15% interest in the company to Blumont Group in an effort to expand its capital base.
ResGen would issue the shares at a price of 22c each, and Blumont’s investment in the ASX- and JSE-listed firm was expected to top between A$20-million and A$25-million, depending on the final structure of the placement of shortfall shares from an entitlement offer that was launched in June.
MD Paul Jury said on Tuesday that the extended equity placement to Blumont, along with other leveraged funding alternatives being pursued, would minimise further equity requirements for the development of the Boikarabelo thermal coal mine, in the Waterberg region of South Africa.
The Boikarabelo mine has probable reserves of 744.8-million tonnes of coal. Stage 1 of the mine development targeted saleable coal production of six-million tonnes a year.
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