The sale of this non-core asset aligns with Cockatoo’s strategy of focusing on the expansion of its flagship metallurgical coal mine at Baralaba and comes after ANZ bank indicated that it would be terminating an $81 million bank guarantee facility on 15 January 2016.

Cockatoo will continue to hold an extensive and strategic Surat Basin position through various wholly owned coal projects containing over 780 million tonnes of JORC compliant coal Resources, the company said in a statement yesterday.

The board of Moreton Resources subsidiary MRV Tarong Basin Coal already owns the MDL 385 Asset, which adjoins the EPC 882 asset.

“The company moved to, on behalf of its subsidiary, make all outstanding payments to S E Qld Energy Pty Ltd, and also as of this week, has made all payments to the Queensland Office of State Revenue for all dutiable transfer costs associated with the deal,” CEO Jason Elks said.

“The combination, of the purchase price, transfers, associated costs and reimbursements total $300,000 and these funds have been fully provided for from the company’s cash reserves.

“We now await the procedural transfer process through the Queensland Department of Natural Resources and Mines, to finalise this transaction.

“We look forward to keeping the market up to date with the progress of our South Burnett Assets, and our advancement of the PFS.”