Xstrata makes cash proposal for all outstanding shares in First Coal

Australian coal producer Xstrata announced on July 28 that it has made an all-cash proposal to acquire all outstanding shares in Canada-based First Coal Corporation (First Coal) with an offer valuing the firm at US$153 million. Xstrata, which currently holds over 50 percent of First Coal's common shares, will offer C$1.75 per share. Privately-owned First Coal is expected to provide Xstrata access to coking coal exploration leases in Canada's British Columbia region. First Coal has in its possession licenses or pending licenses to explore for coal in 94,000 hectares of the Peace River coalfield in western Canada and estimated its metallurgical coal resources at 1.6 billion mt in November last year.