VANCOUVER, Dec. 16 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-Venture: CUU) announced today that the Company has completed a non-brokered private
placement financing of $4,005,000 CDN in funds (the "Offering").
Details of the Offering
The Offering was completed in two tranches, each consisting of 2,250,000
Flow-Through shares at a purchase price of $0.90 per share totaling
$2,005,000. The total Offering raised gross proceeds of $4,005.000 from
the issuance of 4,450,000 Flow-Through shares. The company paid
commission/finder's fees totaling $234,300.00 and issued 260,333
non-transferable warrants. Each non-transferable warrant entitles the
holder to purchase one non Flow-Through common share at a purchase
price of $0.75, exercisable at any time until the close of business on
the expiry of 24 months.
The first tranche was completed on November 26, 2010 with the
MineralFields Group (a division of Pathway Asset Management) based in
Toronto, Vancouver, Montreal and Calgary. The second tranche was
completed on December 15, 2010 with Burgeonvest-Bick Securities
Limited, a financial services group headquartered in Toronto. In
accordance with applicable securities legislation, securities issued
pursuant to the Offering are subject to a hold period of four months
plus one day from the date of completion of each respective tranche of
Funds generated from this financing will be used to advance the
feasibility study and include drilling programs, metallurgical testing
and engineering studies associated with the development of the Schaft
Creek Giant Porphyry Deposit.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the
TSX-Venture Exchange (CUU) focused on completing a Feasibility Study on
the Schaft Creek deposit, one of the largest undeveloped copper, gold,
molybdenum and silver deposits in North America. Categorized as a
"giant porphyry deposit" this project is at the advanced development
stage with a Preliminary Feasibility Study ("PFS") prepared by Samuel
Engineering, Inc. of Denver, Colorado, in September 2008. The results
of the PFS were extremely "robust" reporting a NPV @ 8% (before tax) of
$2.8 billion dollars over a 23 year mine life. They contemplated
processing 100,000 tonne per day ("tpd") from an open pit mine using a
standard flotation recovery process. The PFS estimated the current
Mineral Resources (using a 0.2% copper equivalent cutoff) at Schaft
Creek includes; Measured Resources of 436.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02%
molybdenum and 1.55 g/t silver, Indicated Resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02%
molybdenum and 1.56 g/t silver. The PFS projected a recovery of 4.8
billion pounds of copper, 255 million pounds of molybdenum, 4.5 million
ounces of gold and 32.5 million ounces of silver.
A Feasibility Study on a minimum 120,000 tpd open pit mine is expected
to be completed in early 2011.
Copper Fox holds title and a 100% working interest in a contiguous
21,025 hectares (51,954 acres) property which includes the Schaft Creek
deposit subject to certain royalty agreements and an earn back option.
Teck Resources Limited ("Teck") has an option to acquire 20%, 40% or
75% of the Schaft Creek project which is triggered upon completion of
the Feasibility Study. Should Teck elect to exercise its option for 75%
they are required to fund subsequent property expenditures up to a
total of 400% of those incurred by Copper Fox ($55 million to date) and
arrange for project financing, including the Copper Fox portion. For
full details of the option please refer to the Company's website www.copperfoxmetals.com.
*United States investors are advised that current Mineral Resources are
not current Mineral Reserves and do not have demonstrated economic
viability. All figures are rounded to reflect the relative accuracy of
the estimate and in keeping with "best practice principals".
On behalf of the Board of Directors
Elmer B. Stewart
President & 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 include statements regarding the completion of a Feasibility
Study on the Schaft Creek deposit; statements concerning the size and
mineralization contained in the Schaft Creek deposit; statements bout
the stage of development of the Schaft Creek deposit; statement about
the results of the PFS, including tones per day processing; statements
on the expected completion date of the Feasibility Study; statements
about Teck's option to acquire up to 75% of the Schaft Creek project
and subsequent funding and financing. Information concerning mineral
reserve and resource estimates also may be deemed to be forward-looking
information in that it reflects a prediction of the mineralization that
would be encountered if a mineral deposit were developed and mined.
The forward-looking information contained in this news release, Copper
Fox has made numerous assumptions, regarding, among other things: 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; and the
continued financing of the Feasibility Study. 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: the
Feasibility Study may not be completed within the contemplated time
frame, or at all; the possibility that the analytical results from the
core sampling does not return significant grades of copper
minerlaization; fluctuations in copper and other commodity prices and
currency exchange rates; uncertainties relating to interpretation of
drill results and the geology, continuity and grade of mineral
deposits; uncertainty of 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