Copper Fox Metals Inc. - Second Quarter Results Three and Six Months Ended April 30, 2009



    CALGARY, June 25 /CNW/ - Guillermo Salazar S., President and CEO of
Copper Fox Metals Inc. (TSX Venture: CUU) announces the second quarter
financial results. The Company reports a loss of $431,763 for the three months
ended April 30, 2009 compared to a loss of $719,874 for the three months ended
April 30, 2008. Copies of the financial statements and notes and related
management discussion and analysis may be obtained on SEDAR at www.sedar.com,
our Company web site at www.copperfoxmetals.com or by contacting the Company
directly. All amounts are in Canadian dollars unless otherwise stated.

    Highlights and Significant Items

    Throughout the second quarter the Company continued to focus its
attention on resolving its working capital deficiency by seeking new sources
of financing, potential mergers with other companies and joint venture
opportunities. The Company's ability to continue operations is dependent on
obtaining required funds to repay its existing creditors, maintain its
interest in the property and achieve success in developing commercial mineral
interests. Given the Company's current inability to raise additional capital,
the Company may need to avail itself of creditor protection to preserve its
property value.
    The Company is dependent upon the raising of capital in order to carry
out its business plan. Additional sources of financing will also be necessary
for the Company to continue exploration and development of its property.
Management is seeking equity financing for the Company and although management
has been successful in the past, there is no assurance that these initiatives
will be successful in the future.
    Subsequent to the Company's first quarter end, on February 26, 2009, the
Company announced that they had entered into a binding letter of intent
("LOI") to merge with Lions Gate Metals Inc. This LOI was terminated on April
17, 2009.
    On June 2, 2009 the Company announced that, subject to the approval of
the TSX-Venture Exchange, the Company intends to complete a non-brokered
private placement offering to raise up to $6,000,000 CDN in funds (the
"Offering"). The Offering consists of 106,666,666 Units at a purchase price of
$0.05625 per Unit, for aggregate gross proceeds of $6,000,000 ($14,000,000
should all warrants be exercised). Each Unit consists of one common share of
the Company and one common share purchase warrant of the Company. Each warrant
entitles the holder thereof to acquire one common share of the Company at an
exercise price of $0.075 and expire one year from the closing date. As of June
25, 2009, the Company has received $1,598,749 net of selling costs of $59,434
related to this issue and will result in the issuance of 29,478,826 shares and
warrants.
    Ernesto Echavarria a businessman based in Culiacan, Sinaloa, Mexico, has
committed to participating in $5,000,000 of this offering. Mr. Echavarria
provided the law firm representing Copper Fox, McLeod & Company LLP (Legal
Agent), with a completed subscription for 88,888,888 units of the Company
together with a remittance of $5,000,000 which was placed into the law firm's
trust account pending completion of the stages of approval. As of the date of
this news release the following steps have been completed:

    
    -  The TSX-V has accepted and cleared the Personal Information Form filed
       by Mr. Ernesto Echavarria;
    -  The first and second tranches of the private placement ($1,100,000)
       with Mr. Echavarria have closed;
    -  A Special Meeting of Shareholders to approve the third tranche
       ($3,900,000) of the private placement to Mr. Echavarria is scheduled
       for 2:00 pm, July 10, 2009, at the Telus Convention Centre in Calgary
       and;
    -  The additional $1.0 million of the private placement to the
       shareholders has been fully subscribed.

    Selected Financial Information

    --------------------------------------------------------------------
                                                     Net (loss)/income
                                                      per share - basic
                                    Net Loss             and diluted
    --------------------------------------------------------------------
                       2009
                       ----
    Second Quarter             $     (431,763)        $        (0.00)
    First Quarter              $  (29,135,359)        $        (0.28)
                       2008
                       ----
    Fourth Quarter             $    1,890,230         $         0.02
    Third Quarter              $   (1,307,512)        $        (0.01)
    Second Quarter             $     (720,878)        $        (0.01)
    First Quarter              $     (598,554)        $        (0.01)
    --------------------------------------------------------------------
                       2007
                       ----
    Fourth Quarter             $   (1,215,394)        $        (0.02)
    Third Quarter              $   (2,255,109)        $        (0.01)
    --------------------------------------------------------------------
    

    Liquidity

    The Company had a working capital deficiency at October 31, 2008 of
$2,059,026. This deficiency increased to $3,334,070 at April 30, 2009. This
was as a result of the Company expenditures at the Schaft Creek mineral
property and general and administrative expenses related to its Calgary and
Vancouver offices.
    The Company's ability to continue operations is dependent on obtaining
required funds to repay its existing creditors, maintain its interest in the
property and achieve success in developing commercial mineral interests. Given
the Company's current inability to raise additional capital, the Company may
need to avail itself of creditor protection to preserve its property value.
    The Company is dependent upon the continued financial support of its
creditors in order to carry out its business plan. Additional sources of
financing will also be necessary for the Company to continue exploration and
development of its property. Management is seeking equity financing for the
Company and although management has been successful in the past, there is no
assurance that these initiatives will be successful in the future.
    The Company has announced a private placement offering of $6,000,000.
This private placement provides for the settlement of outstanding creditor
debts of approximately $3,622,000 at June 25, 2009 with the balance of the
funds to be used for general corporate purposes and completion of its
feasibility study on the Schaft Creek project.

    Copper Fox is a Junior Resource Mining Company listed on the TSX-Venture
Exchange (CUU). The company is involved in the exploration and development of
a world-class copper/gold porphyry mineral deposit located in north western
B.C. at Schaft Creek. Under the terms of an option agreement negotiated with
Teck Cominco Limited, Copper Fox can acquire up to a 94.3% aggregate (direct
and indirect) interest in the Schaft Creek mineral resource.

    
    ON BEHALF OF THE BOARD OF DIRECTORS
    Guillermo Salazar S., P. Geol.
    President and CEO
    

    The TSX Venture exchange has not reviewed the contents of this news
release and accepts no responsibility for the adequacy or the accuracy
thereof. This news release includes "forward-looking information" within the
meaning of the Canadian securities laws. Statements, other than statements of
historical fact, may constitute forward-looking information and include,
without limitation: anticipated timing and content of upcoming work programs,
geological interpretations, receipt of property titles, and potential mineral
recovery processes; anticipated dates for receipt of permits, approvals and
other milestones; anticipated results of drilling programs, feasibility
studies and other analyses; anticipated availability and terms of future
financing; future production, operating and capital costs; and operating or
financial performance. 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. For any forward looking information
given, management has assumed that the assay results it has received are
reliable, and has applied geological interpretation methodologies which are
consistent with industry standards. Forward-looking information involves
various risks and uncertainties. There can be no assurance that such
information will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such information. Important
factors that could cause actual results to differ materially from management's
expectations include: fluctuations in 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, production estimates and
estimated economic return; the need for co-operation of government agencies in
the exploration and development of properties and the issuance of required
permits; 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; and other risks and uncertainties disclosed in the company's other
filings with Canadian securities regulatory authorities at www.sedar.com. The
forward-looking information in this news release is based on management's
current expectations and Copper Fox assumes no obligations to update such
information to reflect later events or developments, except as required by
law. Additional information, about the risks and uncertainties of the
Company's business is provided in its disclosure materials, including its most
recent annual and quarterly filings, filed with the securities regulatory
authorities in Canada available at www.sedar.com. The forward-looking
information in this news release is based on management's current expectations
and Copper Fox assumes no obligations to update such information to reflect
later events or developments, except as required by law. Additional
information, about the risks and uncertainties of the Company's business is
provided in its disclosure materials, including its most recent annual and
quarterly filings, filed with the securities regulatory authorities in Canada
available at www.sedar.com.





For further information:

For further information: Jason Shepherd, investor relations, toll free
at telephone 1-866-913-1910, Email: investor@copperfoxmetals.com or visit our
web site at http://www.copperfoxmetals.com

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Copper Fox Metals Inc.

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