The company is in talks with six South African and global banks and other financiers to secure the project financing.
The lending institutions will be getting their credit processes underway with a binding offer expected early next year.
Resource Generation is developing the Boikarabelo coal mine in the Waterberg region of South Africa where there are probable reserves of 744.8 million tonnes of coal on 35% of the tenements under its control.
The Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum.
Subject to obtaining final credit approval and execution of finance and security documents, the financing syndicate will provide about 60% of the total funds required for the mine construction.
The proposed terms of the facility include a term of 9 years including the construction period, a senior debt facility of around US$400 million plus associated facilities including a working capital facility.
Once the formal credit approval is in place, Resource Generation will tap the capital markets to fund the balance of the expected capital expenditure for the mine development.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.