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Australian court approves Keaton's takeover of Xceed

6th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The Federal Court of Australia has approved the scheme of arrangement under which Keaton Energy Holdings would acquire all the issued shares in ASX-listed Xceed Resources.

In August, the South African coal miner made a play for Xceed, offering shareholders 14c in cash for each Xceed share held, and valuing the transaction at A$19.67-million.

Xceed holds an interest in three coal projects in South Africa, including the Moabsvelden, Roodepoort and Bankfontein projects, which have a combined total resource of 114.4-million tonnes.

The junior's most advanced asset is its 74%-owned Moabsvelden, which is located 3 km from Keaton Energy’s Vanggatfontein colliery, in Mpumalanga. The mine is set to start production in late 2014 and will be primarily an Eskom product operation with an export fraction, allowing Keaton Energy to enter the export thermal coal market for the first time.

Xceed said on Thursday that its shares would now likely be suspended from trading from February 7.

Edited by Creamer Media Reporter

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