Previously trading a little more than 2c as Xceed Capital, the company placed 45 million shares at 20c apiece today. This gave it a market capitalisation of $18.1 million, including $12 million cash and no debt.

Xceed’s 74%-owned Moabsvelden open cut project hosts 55 million tonnes of resources and production is targeting 3 million tonnes per annum from the March quarter of 2013.

While the feasibility study is yet to be undertaken, Xceed expects a 10-year plus mine life and aims to start building the low-cost mine by the end of 2011.

A planned drilling program aims to convert the project’s resources into reserves.

Located east of Johannesburg and within 50km of major coal-fired power stations, the project is close to existing infrastructure including rail. Xceed can either bring in a modular washing plant or using alternative treatment facilities nearby.

The company expects about 40-60% of the product thermal coal to be of export quality.

Xceed has signed a binding heads of agreement to acquire a 74% stake of the Vogelfontein thermal coal project in the country, which is adjacent to Xstrata’s Spitzkop Colliery.

Xceed chairman Patrick O’Connor also chairs Western Australia’s Water Corporation and base metals miner Perilya.

Ian Culbert is the managing director of Xceed, and previously held this role for Tritton Resources and Lafayette Mining over his 20 year career mine management career.