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Xceed Resources Tidies Up Share Register

Xceed Resources (ASX: XCD) has closed the previously established sale facility for unmarketable parcels of shares, under which institutional investor Fleming SG Capital Special Opportunities has agreed to purchase the shares.

Under the terms of the sale facility, 854 shareholders who held unmarketable parcels of shares as at close of trade on Friday 3 August 2012 have agreed to sell their shares. These holdings total 781,833 shares.

Fleming SG Capital Special Opportunities is managed by Fleming SG Capital, a joint venture between Fleming Asset Management Botswana and St George Capital, and is a specialist fund targeting investments in the small and micro-cap space in Australia.

The fund, which is a current Xceed shareholder, has agreed to purchase the shares at the average closing price on the ASX over the 10 trading days prior to its offer to purchase the unmarketable parcels of shares, which equated to $0.0755 per share.

Xceed said all costs associated with the sale of the unmarketable parcels of shares will be borne by the company.

Meanwhile, the company continues to advance its Bankfontein and Moabsvelden coal projects in South Africa.

Xceed is currently in advanced stages of securing development financing for Moabsvelden, where there are no infrastructure constraints to development with all production to be sold at the mine gate. The project is expected to deliver $20 million in net operating cashflow per year for 15 years.

Xceed has received from locally based South African banks indicative, non-binding offers of project finance for the development of Moabsvelden - which is located in the Witbank coalfield of South Africa.

The South African banks have commissioned an independent review of the BFS in order to submit final credit approved offers of project finance.

Xceed said that this review is expected to be completed in the coming weeks.

At Bankfontein, an initial drilling program has delivered a 19.7 million tonne JORC resource, of which 15.8 million tonnes is deemed to be of economic interest.

Washability testwork undertaken indicates that primary yields to produce an export quality coal product average 66% in the case of the B Lower seam and 95% in the case of the C Lower seam.

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