Coal miner Aquila Resources has secured a $250 million cash advance facility with National Australia Bank and Commonwealth Bank, giving it financial flexibility ahead of asset sales.

The company, in a statement on Friday, said the agreement with the banks was for a 12-month corporate facility.

Aquila said the sale of its Washpool hard coking coal project in Queensland and Avontuur manganese project in South Africa remained on track, but the new facilities were needed to strengthen its balance sheet pending completion of the asset divestments.

Aquila has put the Washpool project, which it says will cost $368 million to develop, up for sale to generate cash for its planned $6 billion West Pilbara iron ore project in Western Australia.

Reports earlier this month suggested Chinese and Indian companies were among potential buyers for Washpool.

“The facilities are unsecured and, together with cash and liquid assets of approximately $175 million, will assist the company to continue its aggressive exploration, feasibility and project development programs,” Aquila said in a statement on Friday.

“Debt funding discussions in respect of a significant limited recourse debt facility are continuing for the company’s interest in the West Pilbara iron ore project and a detailed term sheet is currently being negotiated.”

Aquila said the timeline for an associated port development at Anketell Point in WA required resolution.

Iron ore miner Fortescue Metals Group has a rival plan to develop a new port at Anketell Point, given Port Hedland is too congested to service the Pilbara’s small- and mid-tier iron ore miners.

Shares in Aquila were down five cents at $5.01 at 1220 AEST.