Coalworks, which was incorporated in 2005, currently has exploration tenements at Oaklands in New South Wales and Hodgson Vale in Queensland.
An initial drilling program that began at Oaklands in 2007 defined an inferred JORC-compliant resource of 280 million tonnes of coal.
With access to road and rail infrastructure and the option to export coal through the Port Kembla Coal Terminal, as well as drilling and modelling that indicates potential for large-scale opencut strip mining, Coalworks said Oaklands exhibits "a number of salient features" indicating potential for profitable mining development.
The company said it intends to proceed with trial coal production at Oaklands as part of a feasibility study to construct a coal mine at the site.
At Coalworks' Hodgson Vale project in Queensland's Clarence-Moreton Basin, analyses by previous tenement holders have indicated the presence of hard black coal with potential for sale as a medium grade steaming coal.
Development at Hodgson Vale will include geological modelling of existing data; a bulk sampling program at representative sites throughout the project area to determine coal washability and characteristics; and complete resource definition and engineering studies.
Coalworks also has an exploration licence for a limestone deposit at Ashford in New South Wales.
Money raised in the IPO will go towards funding ongoing studies towards production at the Oaklands and Hodgson Vale coal projects, technical and feasibility studies on the lime products market, and the acquisition and exploration of other coal projects.
Coalworks said it does not anticipate earning net income for the year ending June 30, 2008, and has no earnings forecasts for the year or subsequent years as it is still in project development.