Xceed told shareholders today that the proposal was indicative, non-binding, conditional and incomplete - and there could be no assurance that the proposal would result in any transaction occurring.

The Australian Stock Exchange-listed company said that the proposal was subject to a number of conditions, including the completion of satisfactory due diligence and execution of formal, binding documentation, amongst others.

Xceed said it decided to disclose information about the discussions because it had invited the proposer to undertake due diligence, resulting “in a wider range of people becoming aware of the proposal and the company is concerned that there is an elevated risk that the confidentiality of the proposal may be lost.”

The South Africa-focused company owns a 70% interest in the Moabsvelden project, which it expected to be one of the largest new mines in the Witibank coalfields.

Moabsvelden is expected to have a mine life in excess of 14 years, with the potential to export domestic-quality thermal coal from an open-cast, low-strip mine.

It has JORC reserves of 66 million tonnes and resources of 43.8 million tonnes, according to the company’s website.

The company also has the Roodeport and Bankfontein projects in the coalfield.