Keaton Energy Holdings has reported positive progress regarding its offer to acquire the entire issued share capital of Xceed Resources, including the specific issue of 32 647 838 new Keaton ordinary shares at an issue price of R1.7782 per share.

“All the resolutions to approve and implement the transaction and the specific issue  were approved by the requisite majority of Keaton shareholders,” the company said in a statement. “The transaction and the specific issue are still subject to a number of conditions precedent, including approvals by Xceed’s shareholders and the Federal Court of Australia.”

As Keaton sets its sight on the 5Mtpa mark, this acquisition is expected to increase the company’s annual Eskom quality coal output and provide Keaton access to the export thermal coal market for the first time.

Xceed holds an interest in three South African coal projects, including Moabsvelden, Roodepoort and Bankfontein. Roodepoort hosts a 29.3 Mt open cast coal resource and Bankfontein hosts a 13.7 Mt predominantly underground coal resource.