UP to $3.8 million has been secured by Fox Resources for exploration and development at its Queensland coal prospects.
The money – raised through a share purchase arrangement with the Australian Special Opportunity Fund, LP and The Lind Partners – would also be used for additional working capital and corporate purposes.
As part of the agreement, Fox would receive $350,000 upon execution in the form of a $300,000 convertible security, and $50,000 as repayment for fully paid ordinary shares.
Lind would also invest up to $150,000 in monthly share subscriptions during the next two years.
“The agreement with Lind will allow Fox to advance its exploration program with the hopes of unlocking significant value at its Bundaberg coking coal project,” Fox managing director Paul Dunbar said.
“The agreement ensures that the company’s ongoing efforts are fully funded as we advance our Queensland coal project over the coming months.”
Fox has more than 10,000 square kilometres of highly prospective coal tenements within major coal bearing basins in Queensland.
The company recently became free to focus on the exploration program after completing the transfer of 16 coal tenements from XLX Exploration, including Bundaberg, Styx, Emerald, Springsure, Alpha and Eromanga.
Fox would start its exploration program by drilling seven holes at Bundaberg, which would allow the company to define a resource estimate.
The Bundaberg project is next to a coal seam recently discovered by a subsidiary of Gina Rinehart’s Hancock Prospecting.
Fox’s exploration program also covers base metal and gold prospects in the Pilbara region of WA.