Australia-based exploration company Rey Resources is set to offload its Duchess Paradise coal project, which is located in south-east of Derby for A$21m ($19.29m).

The company has inked an agreement with Crystal Yield Investments for the sale of the project held by Rey’s subsidiaries Blackfin and Rey Derby.

Commenting on the sale, Rey Resources managing director Kevin Wilson said: "A period of challenging conditions in international coal markets has led us to emphasise a strategy of developing our oil and gas prospects, particularly the acquisition in March this year of a further 15% interest in two key Exploration Permits in the Canning Basin, bringing our total interest in the two leases to 25%."

As per the terms of the agreement, Crystal will pay the total sale consideration amount in three installments with initial A$3m ($2.7m) to be paid upon signing the share sale agreement.

During stage two, Crystal is required to pay A$9.6m ($8.8m) upon completion of due diligence by Crystal to acquire 60% stake in the Blackfin and remaining A$8.4m ($7.7m) upon the grant of the Mining Lease, completely purchasing the project.