VANCOUVER, Sept. 10, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce the closing of a financing by an insider for
proceeds of $4,025,000 (the "Financing").
The Financing consisted of the issuance of 3,500,000 units at a purchase
price of $1.15 per unit, for aggregate net proceeds of $4,025,000. 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 $1.25 prior to 5:00 PM September 10, 2013.
Monies raised from the Financing will be used to fund costs associated
with completing the feasibility study on the Schaft Creek deposit and
general operating expenses.
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.
Copper Fox is also pleased to announce that subject to the approval of
the TSX-Venture Exchange, the Company intends to complete a
non-brokered private placement to raise up to CDN $4,000,000 (the
"Offering". The Offering is expected to consist of 3,478,261 units at
a purchase price of $1.15 per unit, for aggregate gross proceeds of
$4,000,000. Each unit consists of one common share 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$1.25 prior to 5:00 pm on the one year anniversary of the closing
date of the Offering.
Mr. Ernesto Echavarria, a Director, insider and control person of Copper
Fox as defined by the regulators of the TSX-Venture Exchange, has
committed to participating in 100% of the Offering.
Monies raised from the Offering will be used to fund costs associated
with the recently announced purchase of the Van Dyke and Sombrero Butte
Copper projects in Arizona, the Schaft Creek Feasibility Study and
general operating expenses.
About Copper Fox
Copper Fox is a Canadian-based resource development company listed on
the TSX Venture Exchange (TSX-V:CUU) with a corporate office in Calgary
and an operations office in Vancouver and is involved in the
exploration and development of the Schaft Creek
copper-gold-molybdenum-silver deposit located in northwest British
The Company is working on completing a Feasibility Study on the Schaft
Creek mineral deposit, one of the largest undeveloped copper, gold,
molybdenum and silver deposits in North America. The Feasibility Study
is being led by Tetra Tech Wardrop on a minimum 120,000 tpd open pit
mine and is expected to be completed mid-late summer, 2012.
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 option agreement dated January 1, 2002
between Teck Resources Limited ("Teck") and Copper Fox (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 Copper Mines Limited ("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 will earn 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 property is triggered upon delivery of a positive Feasibility
Study to Teck. 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 ($84.9 million to July 31, 2012)
and 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"
provisions of the Teck Option Agreement.
*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 principles".
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 intention to complete a $4,000,000 Private Placement; the
timing and completion of a the Feasibility Study; 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 recovery processes.
Information concerning measured mineral resources, indicated mineral
resources and inferred mineral resources 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.
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; the continued financing of the Feasibility Study and Copper
Fox' operations; the anticipated analytical results of the current
drilling and metallurgical testing programs. 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 complete a $4,000,000 Private Placement on the terms
contemplated, or at all; 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 Feasibility Study may not be completed within the contemplated time
frame, or at all; the Environmental Assessment Application may not be
obtained in a timely manner, or at all; the possibility that the
metallurgical test work on the core samples does not recover
significant percentages of copper mineralization; 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; Copper Fox may never
complete the option to purchase the continuous group of five mineral
tenures located south and west of the Schaft Creek project;
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
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