Fox to sell Queensland coal project

Fox Resources has announced plans to sell its Bundaberg coking coal project in Queensland, while shifting focus on developing its Western Australian projects.

The junior miner said the project, which contains an inferred coking coal resource of 101 million tonnes, had been valued at between $15.5 million and $21.5 million.

Fox said it had been in discussions with PCF Capital Group to evaluate its divestment options for the project.

The sale of the Queensland project will allow the company to focus on its nickel and base metal projects in WA, including its Radio Hill and Sholl deposits, and its Osborne exploration target in the Pilbara.

“The company’s geological team is preparing to continue exploration activities on the Mt Oscar joint venture tenement for Magnetic South, its joint venture partner on the project,” Fox said in a statement.

“The aim of these activities is to assist in targeting gold at the White Quartz Hill prospect.”

Last year, Fox purchased a series of coal tenements in Queensland for about $1.7 million in a cash and share package.

It acquired 16 coal tenements, including Bundaberg, Styx and Emerald.

Shares in Fox Resources last traded at 1 cent per share at 10am.