While the deal requires regulatory approvals, 49% NSJV partner Mitsui Coal Holdings also has pre-emptive rights it can exercise to possibly counter New Hope’s offer.

“The sale of these non-core assets aligns with Cockatoo’s strategy of focusing on the expansion of its flagship metallurgical coal mine at Baralaba,” Cockatoo said.

“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 remains in voluntary suspension pending a further announcement concerning the funding and financial position of the company.”

New Hope shares traded as much as 7% higher on the back of this news on Friday which it did not make any announcements on.