The offer represents a milestone in the programme to tidy up and wrest value from the straggling Cambrian group of companies initiated by chief executive Mark Burridge after taking the helm last year. Under the proposed scheme of arrangement, Cambrian, advised by Landsbanki Securities (UK), is offering one new Cambrian share for every 3.25p Coal International share held.

When the offer was announced, that put a price of 57.62p a share on Coal International, which last year raised £28.5 million at 28p to help fund its key Maple Creek coal project and is now advised by Cenkos Securities. Durand Eppler, chief executive officer of Coal International and the independent director on its board, argues that the deal will strengthen Coal International’s finances and help it capitalise on strong coal prices, while Burridge says the takeover is ‘a further step towards Cambrian’s transformation into an operating mining group’.

He naturally insists that shareholders in both companies will benefit and initial stock market reaction has been favourable. The Burridge strategy should move the company away from its previous opportunistic phase onto a new plane.

Shares in Coal International, recommended by Growth Company Investor in March at 25.5p, have now reached 57p, valuing the company at £55.6 million, while Cambrian shares, highlighted by GCI in February at 76p, have now hit 191.25p, valuing the company at £186.4 million.

Western Canadian Coal, a larger company in the Cambrian constellation, for which Burridge’s strategy envisages an outside bid or participation, has more than trebled since GCI‘s February mention at 110 to 368p, putting a £377 million tag on the Vancouver-based company.