Caledon Resources said it was in preliminary talks with “a number of parties” that may lead to an offer for the company, in an indication of bargain-hunting in the stricken junior mining sector.

Shares rose more than 30 per cent in the Aim-listed Australian coal miner. However, they still traded near historic lows, despite Caledon starting production of high-quality coking coal – used to make steel – at its Cook mine in Queensland, Australia.