The company said the acquisition would create one of the largest coal portfolios in Australia, combining EER’s 1.74 billion tonne JORC resource with a JORC inferred resource of 440 million tonnes and a drill-identified JORC exploration target of up to 4.5Bt in Idalia’s tenements.

If the heads of agreement to buy Idalia goes ahead it will create a combined EER and Idalia entity valued at $73 million.

Noble currently holds 50.1% of Idalia and Majicyl holds 49.9%.

Following completion of the transaction, Noble and Majicyl will hold 41.18% and 45.98% respectively of the issued shares of EER.

Other shareholders will hold 12.84% of the merged entity.

Under the transaction, EER will become the beneficial owner and ultimate holder of EPCs 1398, 1399 and 1400, all of which sit adjacent to EER's tenements in the Blackall project area.

“The board is extremely pleased to announce this transaction, a result of our continued focus on generating shareholder value through both organic growth and strategic acquisition,” EER said in a statement.

“The combination of these assets potentially creates one of the largest coal resources in Australia, which provides EER with scale for the development of its resources.

“We are confident that the acquisitions of these assets will generate value as we

consider the Idalia areas highly prospective as they are located along strike of our current deposits on which we have recently announced our 1.74 billion tonne thermal coal JORC resource.”