The Bluff project, 20km east of Blackwater, Queensland, has now advanced to the feasibility stage, the company said.

“The company is progressing discussions to secure funding for the Bluff project,” it said.

“Options include debt financing and sale of a project level interest. These discussions are progressing but are yet to be finalised.”

Once developed the project is expected to produce 1.2Mpta of high-quality PCI coal, Carabella said.

“Given the cash reserves and forecast expenditures, and the focus on funding the Bluff project at the project level, the board does not anticipate a requirement to raise equity capital in the short to medium term.”

The company had cash reserves of $10.2 million at the end of June.

Carabella also pointed to the state of negotiations over infrastructure arrangements.

“Discussions with a number of parties to secure rail and port capacity through the Port of Gladstone are well advanced for coal to be produced by the Bluff project,” it said.

“These discussions have also progressed but are yet to be finalised.”