VANCOUVER, Jan. 22, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSXV: CUU) is pleased to announce the closing of a financing by an insider for
proceeds of $1,500,000 (the "Financing").
The Financing consisted of the issuance of 1,764,706 units at a purchase
price of $0.85 per unit, for aggregate net proceeds of $1,500,000. Each
unit consists of one common share of Copper Fox and one common share
purchase warrant of Copper Fox. Each warrant entitles the holder
thereof to acquire one common share of Copper Fox at an exercise price
of CDN $1.00 prior to 5:00 PM January 22, 2014.
Monies raised from the Offering will be used to fund costs associated
with the Environmental Assessment Application and general operating
In accordance with applicable securities legislation, securities issued
pursuant to the Financing are subject to a hold period of four months
plus one day from the date of completing the Financing.
No fees or commissions were paid as part of this transaction.
About Copper Fox
Copper Fox is a Canadian-based resource development company listed on
the TSX Venture Exchange (TSXV: CUU) with a corporate office in
Calgary, AB and an operations office in Vancouver, BC. Its major asset
is the Schaft Creek copper, gold, molybdenum and silver deposit located
in northwestern British Columbia, Canada for which a positive
Feasibility Study was recently completed.
Copper Fox holds title and a 100% working interest in the Schaft Creek
project consisting of 55,779.56 hectares (137,834 acres). Included in
this total are the "Schedule A" mineral tenures originally conveyed to
Copper Fox pursuant to the Teck Option Agreement, which consist of
8,334.34 hectares (20,594 acres). The "Schedule A" mineral tenures are
subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30%
carried Net Proceeds Interest held by Liard and, together with the
additional mineral tenures obtained by Copper Fox within the "Area of
Interest" provided for in the Teck Option Agreement, an earn back
option held by Teck. On completion of the Feasibility Study, Copper Fox
earns Teck's 78% interest in Liard. Teck's earn back option to acquire
either, 20%, 40% or 75%, of Copper Fox's interest in the Schaft Creek
Project is triggered upon delivery of a "Positive Bankable Feasibility
Study" (as defined) to Teck after which they have 120 days to make a
decision. Should Teck elect to exercise its option for 75%, Teck is
required to fund subsequent property expenditures up to a total of 400%
of those incurred by Copper Fox ($84.3 million to July 31, 2012) and
use its best efforts to arrange for project financing, including the
Copper Fox portion. For full details of the Teck earn back option
please refer to the Company's website www.copperfoxmetals.com.
The remainder of Copper Fox's registered interests in mineral tenures in
British Columbia total 47,445.22 hectares (117,240 acres). These
interests have been acquired by Copper Fox through mineral tenure
acquisitions and mineral tenure purchase agreements subsequent to
Copper Fox entering into the Teck Option Agreement. Certain portions of
these registered mineral tenures are subject to inclusion within the
Schaft Creek Project pursuant to the terms of the "Area of Interest"
provision of the Teck Option Agreement.
Additionally the Company holds, through wholly-owned subsidiaries,
mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte
Copper Project') and in Miami, Arizona (the 'Van Dyke BLM Claims'). For
further information on these mining projects please refer to the
Company's web site at www.copperfoxmetals.com .
On behalf of the Board of Directors
Elmer B. Stewart
President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the
meaning of the Canadian securities laws. Forward-looking information
is generally identifiable by use of the words "believes," "may,"
"plans," "will," "anticipates," "intends," "budgets", "could",
"estimates", "expects", "forecasts", "projects" and similar
expressions, and the negative of such expressions. Forward-looking
information in this news release includes statements about statements
about the use of proceeds for the recently completed Private Placement;
potential existence and size of mineralization within the Schaft Creek
project; estimated timing and amounts of future expenditures and
"earn-back" options; geological interpretations and potential mineral
In connection with the forward-looking information contained in this
news release, Copper Fox has made numerous assumptions, regarding,
among other things: the potential mineralization in the Schaft Creek
deposit; the geological, metallurgical, engineering, financial and
economic advice that Copper Fox has received is reliable, and is based
upon practices and methodologies which are consistent with industry
standards. While Copper Fox considers these assumptions to be
reasonable, these assumptions are inherently subject to significant
uncertainties and contingencies. Additionally, there are known and
unknown risk factors which could cause Copper Fox's actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk factors
include, among others: Copper Fox may not use the proceeds from the
recently closed Private Placement as disclosed herein; the actual
mineralization in the Schaft Creek deposit may not be as favourable as
suggested; another deposit may never be discovered on Copper Fox's
property, or contain anticipated mineralization, or mineralization of
any significance at all; a detailed mine plan may not be completed in a
timely manner, or at all; the possibility that future drilling on the
Schaft Creek project may not occur on a timely basis, or at all;
fluctuations in copper, the completed drill holes for which analytical
results are not available may not return significant concentrations of
either copper, gold, molybdenum or silver; commodity prices and
currency exchange rates; conditions in the financial markets and
overall economy may continue to deteriorate; uncertainties relating to
interpretation of drill results and the geology, continuity and grade
of mineral deposits; uncertainty of the metallurgical testwork, the
uncertainty of the estimates of capital and operating costs, recovery
rates, and estimated economic return; the need to obtain additional
financing to develop properties and uncertainty as to the availability
and terms of future financing; the possibility of delay in exploration
or development programs or in construction projects and uncertainty of
meeting anticipated program milestones; uncertainty as to timely
availability of permits and other governmental approvals.
A more complete discussion of the risks and uncertainties facing Copper
Fox is disclosed in Copper Fox's continuous disclosure filings with
Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety
by this cautionary statement, and Copper Fox disclaims any obligation
to revise or update any such forward-looking information or to publicly
announce the result of any revisions to any of the forward-looking
information contained herein to reflect future results, events or
developments, except as required by law.
SOURCE: Copper Fox Metals Inc.
For further information:
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080.