Fox Resources (ASX:FXR) chairman Terry Streeter has demonstrated his faith in the upside prospect by increasing his investment and shareholding in the company to 37.38% from 18.78%.
This is due primarily to his underwriting the company’s one for two entitlement offer of 282,351,686 shares priced at $0.015 to raise $4.2 million for the repayment of debt and for working capital.
Streeter was on 30 June issued 222,619,638 shares in Fox for a total of $3,339,925 in relation to shares he had subscribed for under the offer as well as the underwriting agreement.
Jungle Creek Gold Mines – an entity controlled by Fox chairman Terry Streeter – had agreed to underwrite up to 230,194,837 new shares priced at $0.015 each or approximately $3,452,923 of the offer.
Separately, Streeter acquired 964,000 shares for $18,316 and 36,000 shares for $684 in on market purchases.
His total shareholding now stands at 315,903,225 shares.
The entitlement offer includes 1 free attaching two year option exercisable at $0.04 for every new share subscribed for.
Bundaberg Project
Fox Resources had earlier this year defined an Inferred Resource of 101.2 million tonnes of coking coal at its Bundaberg Project (EPC1523) in the Maryborough Basin in Queensland.
This is nearly three times larger than International Coal’s (ASX: ICX) coal resource in the adjacent EPC2196.
Raw calorific values exceeded 7,000KCal/kg for large sections of the seams while the raw crucible Swelling Index numbers of 8 to 8.5 were similar to those released by ICX in EPC2196 to the north, ranking the coal amongst the highest quality coking coal in the Bowen Basin.
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