Fox to divest Qld coal project

FOX Resources plans to sell its Bundaberg coking coal project in Queensland to focus more on its base metal projects in Western Australia.

Blair Price

It has engaged PCF Capital to evaluate the options to sell the coal project.

“Divestment will allow Fox to focus on developing its Western Australian nickel and base metal projects including the Radio Hill, Sholl deposits and the drill ready Osborne exploration target in the Pilbara,” Fox said.

The Bundaberg project is 20km north of Bundaberg and hosts an inferred coking coal resource of 101 million tonnes plus considerable exploration opportunities.

“An independent valuation obtained for the recent rights issue provided a preferred value of $A17.9 million within a range of $15.5 million and $21.5 million for the Bundaberg coking coal project,” Fox said.

The project is in licence EPC 1523, which is next door to the tenement for International Coal’s Bundaberg project. Both parties struck a deal to share data with each other in March.