MC Mining, an Australia-based coal miner, has confirmed receipt of a takeover bid valued in the range of A$69.34m-A$81.58m ($45.9m-$54m) from Vulcan Resources, a fully-owned subsidiary of Vulcan International.

Vulcan Resources operates the Moatize coal mine, which is touted to be one of the largest operating steelmaking coking coal mines in Mozambique as well as Africa.

MC Mining is engaged in coal exploration, development, and mining in South Africa. Its main assets are the Uitkomst Colliery, Makhado project, Vele Colliery, and the Greater Soutpansberg projects.

The company’s coking and thermal coal assets are primarily located in the Limpopo province.

MC Mining is currently listed on the Alternative Investment Market (AIM) in the UK, the Australian Securities Exchange (ASX), and the Johannesburg Stock Exchange (JSE) in South Africa)

The proposal letter from Vulcan Resources delineates its non-binding intention to extend an off-market cash acquisition proposal encompassing all shares in MC Mining. The indicative price range has been set between A$0.17 ($0.11) and A$0.2 ($0.13) per share.

MC Mining revealed that the proposal includes customary conditions such as conducting due diligence and is presently not a binding offer open for acceptance by the company’s shareholders.

According to MC Mining, its independent board committee (IBC) acknowledged that the indicative price range in the proposal letter exceeded the current takeover bid of A$0.16 ($0.11) per share by Goldway Capital Investment.

However, there is no assurance regarding the reception of a formal offer from Vulcan Resources or its terms, said MC Mining.

The Australian firm said that its independent board committee restated its advice to shareholders to refrain from accepting the existing offer from Goldway Capital Investment.

Furthermore, the committee intends to assess the indicative terms of the proposal letter with the guidance of its financial and legal advisers.

Adelaide Equity Partners will serve as the financial adviser, with legal advice provided by K&L Gates in Australia and Falcon & Hume in South Africa.

MC Mining independent board committee chairman Khomotso Mosehla said: “MC Mining remains committed to keeping shareholders appraised of developments and intends to make a further announcement when more complete and definitive details are received.”