Options include debt financing, which may involve potential off-take financing, and project-level investment.

Significant interest had been expressed for provision of project funding, said Carabella managing director Anthony Quin.

“The Bluff coal project is an attractive development opportunity with robust economics for a 1.2Mtpa product coal mining operation given the project’s low capital costs, attractive strip ratio, proximity to rail infrastructure and ULV PCI coal quality,” he said.

“The focus for Carabella through the next half of the year is on finalising the feasibility study, securing logistics and contractor services, and completing our environmental studies program.

“The project remains on target to commence mining in H1 2014 and we are now also progressing discussions for project funding.”

Given the company’s cash reserves of $10.2 million at the end of June, forecast expenditures and the focus on funding the Bluff project at the project level, the board did not anticipate a requirement to raise equity capital in the short to medium term, the company said.