Keaton is offering Xceed shareholders $0.14 in cash for each share they hold after Keaton and Xceed executed an agreement for a proposed takeover, following an unsolicited approach by Keaton.

The offer, which follows the successful completion of a technical and financial due diligence by Keaton, as well as Keaton’s securing of funding facilities to support the offer, is proposed to be implemented by way of a scheme of arrangement between Xceed and its shareholders.

Xceed managing director Ian Culbert said the offer valued Xceed at about $A20 million.

“Our belief in the company’s Moabsvelden thermal coal project is validated by the fact that an experienced local operator has elected to make an all-cash offer to buy the company at a substantial premium to its current market valuation,” Culbert said in a statement Monday.

The offer price represents a 35% premium to the volume weighted average price per Xceed share over the 30 trading days prior to Monday’s announcement.

“The board also recognizes that the outlook for acceptable shareholder returns for many junior mining companies, Xceed included, as expressed by their share prices, continues to remain subdued and this all cash offer at a premium presents a rare opportunity for our shareholders to realize their investment,” Culbert added.

A meeting of Xceed’s shareholders called to consider the scheme was scheduled for December 2. Xceed said its directors unanimously supported the offer.

The deal was also conditional to the approval of an “independent expert”, RSM Bird Cameron Corporate, which would provide a report and opinion to Xceed shareholders as to whether the scheme was in their best interests.