Coronado Global Resources (ASX:CRN) is proposing a deal with Stanwell to enhance financial stability, extend key coal supply agreements, and secure long-term liquidity, while supporting local jobs and over 10% of Queensland's energy needs, according to a Tuesday Australian bourse filing.

The non-binding deal, pending due diligence, will extend the company's new coal supply agreement with Stanwell to 2043 from 2037, offering increased flexibility in coal nominations, per the filing.

The company will replace its current asset-based loan with a $265 million, 5-year facility from Stanwell, providing enhanced liquidity support and greater covenant flexibility, the filing said.

The arrangement includes prepayments from Stanwell if the company's cash balance falls below $250 million, aimed at de-leveraging, boosting financial health, and securing jobs for 2,500 workers in Central Queensland, the filing added.

The metallurgical coal producer's shares rose around 1% in recent Tuesday trade.