Australian coal mining company MC Mining has received a non-binding, off-market cash buyout proposal from Vulcan Resources, at an indicative price range of A$0.17–A$0.20 a share.

The proposal values the equity of MC Mining between A$69.3m and A$81.5m.

It is higher than Goldway Capital Investments’ A$0.16 takeover bid, which valued MC Mining’s capital at A$65.3m. 

Last week, MC Mining called on its shareholders to dismiss Goldway’s proposal.

MC Mining’s Independent Board Committee (IBC) has reiterated this call again, while stressing that there is no guarantee a formal bid will be made by Vulcan or what the terms of such an offer might be.

Vulcan’s offer is subject to several standard conditions, including a thorough due diligence process.

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IBC chairman Khomotso Mosehla said: “The IBC will evaluate the indicative terms of the proposal letter, including taking advice from its financial and Australian and South African legal advisors, Adelaide Equity Partners as Financial Advisor, K&L Gates as Australian Legal Advisors and Falcon & Hume as South African Legal Advisors.

“MC Mining remains committed to keeping shareholders appraised of developments and intends to make a further announcement when more complete and definitive details are received.”

Vulcan operates the Moatize Coal Mine, the largest operating steelmaking coking coal mine in Mozambique and Africa.

Meanwhile, MC Mining is known for its Greater Soutpansberg Projects, which produce coking and thermal coal, as well as its Makhado hard coking coal project. Both of these are in the Limpopo province of South Africa.

The company’s Uitkomst Colliery in South Africa’s KwaZulu-Natal province produces metallurgical and thermal coal, while its Vele Colliery in the Limpopo province produces semi-soft coking and thermal coal.