Fox has highlighted the potential for 16 coal exploration permits and one currently under application.

The acquisition is targeting both thermal and coking coal resources in the Styx Bowen, Maryborough and Galilee basins.

The tenements have been held by XLX Exploration, Cliffs Australia Coal and Jacaranda Coal.

Fox chief executive Bruce Garlick said the company was in discussions with a major explorer with an aim to forming a joint venture to explore the properties in 2013.

“This is an important step forward in rebuilding Fox Resources into a major diversified exploration company,” he said.

Fox said it considered the coal assets attractive because they were adjacent to an abundance of high quality coal deposits and that historical data indicated a presence of coal.

Some of the tenements will have access to rail and port infrastructure.

There are no JORC reserves on the tenements. However, Fox said results from a review of current and historic data were encouraging and that initial focus would likely be near Bundaberg.