The company issued a statement yesterday after receiving numerous enquiries about the status of its funding, the company said.

“As previously announced the company has been negotiating with various parties including a club of potential financiers to provide project finance for the construction of the Boikarabelo mine,” it said.

“Negotiations are still continuing with the previously announced club of financiers with work continuing on an extensive terms sheet and bank case financial model.

“The process in reaching an agreed term sheet has been protracted due to several factors including the variable nature of the envisaged loan structure and maintaining deliverable outcomes within prevailing debt and coal markets.”

ResGen said that if the proposed facility was made available, the company did not envisage the need for an associated equity raising.

“In addition to the above, the company continues to explore alternative funding arrangements,” it said.