The company has officially opened the offer period for an IPO listing, which is set to close on March 30.

Cuesta is seeking to raise $34 million by the offer of 113,333,333 shares at an offer price of 30c.

Cuesta’s minimum subscription of 80,000,000 shares will raise $24 million, and upon the listing, the company will have a market capitalisation of $67.4 million.

Austock Securities has been appointed lead manager and sponsoring broker for the IPO.

Funds raised from the offer will be primarily used to fund a two-year exploration and development programme on the company’s thermal, PCI and coking coal exploration prospects.

Cuesta managing director Matt Crawford said this offer would create many opportunities for the company and its shareholders.

“This is an opportunity for investors to participate in the development of significant coal deposits,” he said.

“We have assembled a large portfolio of assets in Queensland’s world class coal basins.

“In addition to our existing resource base, we are confident of continuing exploration success in 2012 and beyond.”

The opening of the IPO offer comes soon after the company received $A5 million in funding, marking the first stage of Beijing Guoli Energy’s $20 million injection into the company.

Cuesta entered into the funding agreement with Guoli Energy on December 29, 2011.

Cuesta formed in September last year to acquire the available securities of Queensland coal exploration company Blackwood Coal in preparation for a public listing.

Cuesta’s tenements are located in Queensland’s coal bearing regions of the Surat, Bowen and Galilee basins.

The company has established operating systems to fully undertake its planned 2012 and 2013 drill programmes and intends to drill 10,000m during 2012 alone.

Trading on the ASX is scheduled to start on April 5.