The Alberta-headquartered company said Monday that the cash deal works out to $10 per common share, a 70% premium over the closing price on October 28 and a 112% premium over the 20-day volume weighted average trading price on the Toronto Stock Exchange.

“We believe the arrangement is a compelling transaction for Grande Cache Coal's shareholders and recognizes our highly attractive mining operation and the exceptional team that we have assembled at Grande Cache Coal,” president and chief executive officer Robert Stan said.

“In addition, Marubeni has had a long standing business relationship with the corporation and has a 40-year history with the corporation's mine. Furthermore, Winsway is one of our main customers for the Chinese market.”

The deal is subject to regular closing conditions, including regulatory approvals, and a two-thirds approval vote by GCC shareholders.

Grande Cache says it also requires majority approval of Winsway's shareholders and the approval of the Hong Kong Stock Exchange.

The companies expect the takeover to close in February.

“The board of directors of Grande Cache Coal, after consulting with its financial and legal advisors, has unanimously approved the arrangement agreement and unanimously determined that the arrangement is in the best interests of Grande Cache Coal,” the company said.

“It unanimously recommends that all Grande Cache Coal shareholders vote in favour of the arrangement at the shareholder meeting to be called to consider the arrangement.”

Grande Cache Coal holds coal leases covering over 22,000 hectares with an estimated 346 million tonnes of coal resources in the Smoky River coalfield.