Fox Resources (ASX: FXR) is free to focus on its highly anticipated drilling at its Bundaberg Coking Coal Project in Queensland after completing the transfer of 16 coal tenements from vendor XLX Exploration.
The company has paid $1 million in cash to XLX and will issue 16,628,440 shares worth about $725,000 (based on the weighted average price of shares traded on ASX over the 15 trading days up to and including 20 December 2012).
The Queensland tenements include Bundaberg, Styx, Emerald, Springsure, Alpha and Eromanga, which were transferred into the company's wholly owned subsidiary Waterford Coal.
It also advised that it is in early stage negotiations with potential financiers to provide further funding for its planned exploration programs, including the proposed program at the Bundaberg tenement.
Fox plans to drill seven holes at Bundaberg to varying depths along five nominal west-to-east lines to determine if the seams intersected by ICX are continuous with and correlate to those intersected in historical 1970's - 1980's drilling.
These holes will be geophysically logged and are expected to enable the company to generate a structural model that will allow Resource calculation.
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