Australian exploration mining firm Xanadu Mines Ltd. wants to dispose its shares in its Mongolian-based based mine in the next six months in a bid to re-strategize its corporate operations.

Brian Thornton, Chairman of Xanadu Mines Ltd., said the company would want to convert into cash its holdings on two wholly owned thermal coal projects in Mongolia.

"Either that, or we bring in a bigger player to drive their advancement," Mr Thornton said of the projects which have the advantage of being close to rail lines.

"The money that we would get from either the trade sale or joint venture would then fund the copper-gold business ... and also fund our share of the coking-coal business," Mr Thornton told AAP.

Mr Thornton clarified the company is not cash-strapped that's why it wants to sell the two mines, stressing Xanadu Mines Ltd. has about $20 million in the bank currently.

He did say, however, that the cash generated from the sale "will be a game changer" for Xanadu Mines Ltd.'s exploration plans.

"It just gives us more flexibility and firepower to drill the bigger opportunities."

Funds expected from the thermal coal sale will help finance its copper and gold projects, as well as coking coal joint ventures with Asian commodities trader Noble Group in Mongolia.

In February 2011, Xanadu Mines Ltd. partnered with commodity trader Noble Group Ltd. to develop ferro alloys, iron ore and coking coal opportunities.

Mr Thornton said they are still discussing with Noble Group Ltd. regarding the sellout.

"Our focus would be on coking coal assets with Noble, and our gold and copper assets," Mr Thornton said in Bloomberg News. "There's nothing concrete on the table yet."

"We want to simplify the business to a copper-gold stream and we have a separate joint venture company with Noble for coking coal," he added.

Mr Thornton hinted Xanadu Mines Ltd. is taking interest to partake over the massive deposits in Mongolia where the Oyu Tolgoi copper and gold project is located. Australian miner Rio Tinto manages Oyu Tolgoi.

"It is the resource-rich frontier of the world currently."