The "purchase and sale agreement" with the unnamed US operator would be accretive in the first year if the transaction is followed to completion.

The deal has met its due diligence requirements, and as such Homeland has exercised an exclusive 90-day right to negotiate the binding agreement and has made a non-refundable deposit of $US500,000 towards the asset’s purchase price.

“We are very excited by the quality of this asset and feel confident about its fit with the company’s overall strategic plan,” said company president Stephen Coates.

“Increasing our production profile and diversifying geographic exposure is a key complement to our own organic growth in southern Africa.”

Homeland currently owns two producing South African operations: the Kendal complex near Witbank, and Northfield, a site reclamation project near Dundee.

It also has an advanced development coal project, Eloff, and a number of early-stage exploration properties in Mpumalanga and Kwa-Zulu Natal.

Homeland also noted that it is in negotiations to obtain "a number" of coal property assets in eastern South Africa and neighbouring countries.