VANCOUVER, June 5, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) today provides an update on the Schaft Creek project and reports that
discussions are continuing between the Company and Teck Resources
Limited ("Teck") regarding Teck's back-in to the Schaft Creek
property. Discussions with Teck commenced following the Company's
completion of a National Instrument 43-101 technical report pertaining
to a feasibility study on the Schaft Creek Mineral Deposit. As
disclosed in the Company's news release dated February 4, 2013, the
feasibility study has been filed and is available on SEDAR (www.sedar.com). There can be no assurance that the discussions with Teck will lead
to Teck exercising any of its earn back options nor that the Company
and Teck will enter into a definitive joint venture agreement as
contemplated under the Teck Option Agreement.
About Copper Fox
Copper Fox is a Canadian based resource development company listed on
the TSX-Venture Exchange (CUU-TSX-V) with a corporate office in Calgary
and an operations office in Vancouver.
The Company announced the results of a feasibility study on the Schaft
Creek Mineral Deposit, on December 21, 2012. Schaft Creek is one of
the largest undeveloped copper, gold, molybdenum and silver deposits in
North America. The feasibility study was completed by Tetra Tech
Wardrop at a nominal 130,000 tonne per day open pit mine.
The Schaft Creek project consists of 56,701.44 hectares (140,112
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 a
"Positive Bankable Feasibility Study" (as defined), 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" (as defined) up to
a total of 400% of those incurred by Copper Fox ($85.3 million to
December 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 48,367.10, hectares (119,518 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.
Additionally the Company holds, through its wholly-owned subsidiaries,
mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte
Copper Project') and in Miami, Arizona (the 'Van Dyke BLM Claims').
The Sombrero Butte copper project consists of 60 claims (3,342 acres)
located in the Bunker Hill Mining District, 44 miles northeast of
Tucson and the 35 Van Dyke BLM Claims (529 acres) located to the west
of the Van Dyke copper deposit in Miami.
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 includes statements about Teck's earn
back options available under the "Teck Option Agreement" dated January
1, 2002 on Schaft Creek; discussions regarding the terms of a
definitive option joint venture agreement; and Teck's election to
exercise its earn back option.
In connection with the forward-looking information contained in this
news release, Copper Fox has made numerous assumptions. 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: discussions with Teck
may not lead to Teck exercising any of its earn back options; the
Company and Teck may not enter into a definitive joint venture
agreement; and Copper Fox may not proceed or continue with activity on
the Schaft Creek project as currently planned.
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