Shares in the junior explorer opened at 20.5c and hit a high of 21c before closing at 19.5c.

The company was looking to raise $A20 million in its float to advance exploration and development at its tenements in Queensland's Bowen Basin.

Cockatoo owns rights to four Queensland coal projects that the company plans to explore and develop towards production.

Its two lead projects, Wonbindi and Dingo, covering 48,640 hectares, are located on the south-eastern flank of the Bowen Basin.

Cockatoo said yesterday a cultural heritage survey had been approved and a drill rig had arrived on-site at Wonbindi. Drilling will begin this week with 30 holes to be drilled out of a proposed 100 hole program to move the Wonbindi JORC-resource to reserve status.

At Dingo 12 seismic traverses have been completed with the results due early 2006.

At its Guluguba tenements, Cockatoo said it had entered into a letter of intent with Australian Transport and Energy Corridor to progress negotiations for a take of pay contract for the carriage of coal from the Surat Basin to the port of Gladstone. The company said this was in anticipation of the completion of the Wandoan to Theodore “missing link” rail line.

In its prospectus, Cockatoo said it would opt for opencut truck and shovel operations over longwall or dragline strip methods because of the inclined and faulted nature of the coal seams in its tenements.

Cockatoo Coal now counts European carbon trading house SSM Coal BV, Canadian funds management group Dynamic Funds and resources fund Triangle Resources Fund among its shareholders.