The company was forced to respond to a price query on Wednesday after its share price jumped to A69.5c on Tuesday, up from 58.5c a day earlier.

In response to the query, Bandanna said it was actively progressing development plans for its key Bowen Basin plans, particularly its Springsure Creek and Dingo West projects and was in discussions with a number of companies about participation in the projects.

Following these discussions, Bandanna provided third parties with access to due diligence.

“The third parties are representative of a variety of industry participants, they include Samtan,” the company said.

To date, one indicative, non-binding agreement had been received and the board was assessing the proposal.

Despite the interest in the company, Bandanna urged shareholders not to react.

“There is no certainty that Bandanna will receive any proposals on acceptable terms from any party, or that any transaction will eventuate,” Bandanna said.

“Shareholders are advised to take no action at this time.”

Bandanna suggested the rise in its share price was the market responding to a spate of significant achievements, including increasing the indicated resource for its Springsure Creek project by 76% to 228 million tonnes.

Springsure Creek is projected to consist of two longwall operations targeting 11Mt per annum of run of mine thermal coal over an approximate 20-year mine life.

First coal production from the mine is expected in 2014.