The company, which received a “speeding ticket” from the Australian Securities Exchange, said it was also in discussions with strategic partners to develop its tenements, which lie east of Broome.

Rey Resources managing director Kevin Wilson said: “We are pleased with the outcome of the offer, which received strong support from existing and new institutional and sophisticated shareholders.

“The funds raised, together with our existing cash on hand, will ensure we can progress the permitting and approvals required for the Duchess Paradise Coal Project, while maintaining a sufficient level of working capital.

“We continue to advance discussions with several parties who have expressed interest in becoming partners in the Duchess Paradise coal project.”

Wilson told Rey Resources’ recent AGM that the draft feasibility study for Duchess Paradise highlighted significant thermal coal reserves and resources delineated with future large upside potential.

Project approvals relate to an export operation of up to 2.5 million tonnes per annum, with construction targeted for 2013, subject to timing of government approvals, he said.

The DFS estimated a 10-year mine life for the project using high wall mining methods but this could be extended, with drilling currently being carried out on the sub-crop.