As previously reported on International Longwall News, the Australian listed company said it had taken options to acquire coal assets next to Rio Tinto's Hail Creek mine.
Eastern plans to acquire and combine tenements adjoining Hail Creek.
The company said it had targeted first open-cut production within three years, subject to due diligence, feasibility studies and shareholder approval. Underground mining further down the track is also a possibility.
The rail line to Dalrymple Bay, 100 km away, runs through one of the tenements.
The company is headed by Gordon Smith who developed the Foxleigh coal mine near German Creek.
The funds will also be directed to ongoing coal seam methane work.