Under the proposed transaction, Keaton Energy will acquire interest in Australia-based Xceed’s three three South African coal projects – Moabsvelden, Roodepoort and Bankfontein.
Following the completion of the acquisition, Xceed will become a wholly-owned subsidiary of Keaton Energy and will be delisted from the Australian Securities Exchange (ASX).
The offer is subject to the completion of certain regulatory conditions.
Keaton Energy chief executive officer Mandi Glad said that the acquisition is consistent with the company’s strategy of strengthening its position of becoming a 5Mtpa coal producer.
"The Xceed transaction reflects our strong belief in the South African coal industry, and the growth of the group bodes well for Keaton’s continued delivery of records across mining, processing, sales and cash generation," Glad added.
According to Keaton Energy, the acquisition will increase its opencastable coal resource by over 100 million tons and, primarily, increase the run of mine coal reserve in the greater Vanggatfontein Colliery area by about 44 million tons.
The expanded Keaton Energy will then be able to meet its strategic objective of producing 5 million tons per year of diversified coal products.
