PERTH (miningweekly.com) – The shareholders of ASX-listed junior Fox Resources smiled on the news that the company had entered into two agreements to sell and transfer a portion of its Mount Regal tenement, in Western Australia.
The company signed agreements with quarry operators Hanson Construction Materials and Archipelago Nominees, with the total value of the contracts set at A$1.16-million.
Fox CEO Bruce Garlick said on Wednesday that the company had received A$400 000 to date, with the balance of the payments due once the mining leases were transferred to the respective parties.
Fox would also receive a royalty payment for all material sold once operations start.
Garlick noted that there were a number of existing quarry operations already established within the Mount Regal tenement, which was thought to contain a reliable source of suitable material for quarrying to meet the demands of the construction boom already under way in the region.
He assured shareholders that the parcels of land being sold off in the transactions would not interfere with the company’s exploration work at Mount Regal, as the company retained mineral rights over the tenement area.
Fox share prices spiked by nearly 16% on Wednesday, to trade at a high of A$0.045 a share.