Exploration company Fox Resources has signed a data sharing and confidentiality arrangement with International Coal for their adjacent hard coking coal projects at Bundaberg, Queensland, which straddles EPC 2196 and EPC 1523.
Under the terms of the agreement, the companies will jointly work to develop the resource at Bundaberg held under EPC 1523, which is 100%-owned by Fox, and EPC 2196, 75%-owned by International Coal and 25%-owned by Queensland Coal Investments.
The agreement represents the first step towards possible development of the coal seams in the area, which intersect 2.45m of coal at Fox 1 coal, following recent drilling by Fox.
Fox Resources managing director Paul Dunbar said that through the arrangement, the companies will evaluate the economic viability of the combined coal seams that occur on EPC 2196 and EPC 1523.
"We are going to work together in a transparent manner to evaluate the potential and possible economic viability of the combined project," Dunbar said.
"It's in our best interest to see the project evaluated and potentially developed to its maximum potential."
The companies believe that the deal will prepare them for future co-operation regarding the project development.
The Bundaberg project is said to host inferred resource of hard coking coal within EPC 2196.
Once the data from the recently completed drilling programme is compiled, a resource is also expected to be estimated on EPC 1523.
International Coal chief executive officer Glenn Simpson said the company aims to refine the understanding of its resource and the resource potential in the region.
"Having a strong relationship with Fox Resources will ensure we maximise that opportunity and makes perfect sense for the potential development of the area," Simpson said.