Xceed relists as coal explorer

Perth-based Xceed Capital has relisted on the Australian Securities Exchange as Xceed Coal, following the completion of a $9 million capital raising.

Xceed said it would use the proceeds of the raising to fund the construction of a multi-project coal business in South Africa.

The company will have a market capitalisation of $18.1 million at 20c a share, $12 million in cash and no debt, Xceed said in a statement.

Xceed said it would firstly develop its 74 per cent-owned Moabsvelden thermal coal prioejct in south Africa ,with construction kicking off in the December quarter of 2011.

First production from Moabsvelden is targeted for the first quarter of 2013.

The Moabsvelden deposit holds a 55 million tonne JORC-compliant thermal coal resource.

Xceed said it also has a second asset in its development pipeline, having signed a binding heads of agreement to acquire 74 per cent of the Bogelfontein thermal coal project.

Historical drilling at Vogelfontein pointed to a resource of 26Mt, with upside potential of 60-80Mt.

Xceed Capital formerly traded as a pharmaceuticals, biotechnology and life sciences company, before its shareholders approved its shift in focus to acquire coal assets and become a minerals explorer.

At 2:11PM (WST) Xceed Resources shares were trading at 23 cents.