The ResGen shares will be offered at 22c each, with the amount raised dependent on the number of shortfall shares from a recent ResGen entitlement offer.

Blumont has a market cap of about $2.9 billion and is increasingly making resource investments to diversify its investment portfolio.

“We are pleased to welcome Blumont, a global institutional investor focused on strategic long-term investments in the resources sector, onto our share register,” ResGen managing director Paul Jury said.

“We will be detailing our positive recommendation to shareholders in the notice of annual general meeting in due course, but together with the leveraged funding alternatives we are vigorously pursuing, the extended equity placement to Blumont minimises any further equity requirements for the development of the Boikarabelo mine.”

The Boikarabelo project in South Africa’s Waterberg region is expected to produce an initial 6 million tonnes per annum, split equally between export and domestic coal.

It has probable reserves of 744.8Mt of coal on 35% of the company’s tenements.