VANCOUVER, March 8, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSXV: CUU) is pleased to announce that subject to the approval of the TSX-Venture
Exchange, it has increased the size of its previously announced
non-brokered private placement from $2,500,000 to $3,000,000 (the
"Amended Offering"). The Amended Offering is expected to consist of up
to 3,797,468 Units at a Purchase Price of $0.79 per Unit, for aggregate
gross proceeds of up to $3,000,000. 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 $1.00 prior to 5:00 pm on the one year
anniversary of closing of the Offering.
Mr. Ernesto Echavarria, a Director, insider, and control person of
Copper Fox as defined by the policies of the TSX-Venture Exchange, has
committed to 83%, or $2,500,000 participation in the Amended Offering.
The Company intends to place the remaining $500,000 of the Amended
Offering on a private placement basis.
Monies raised from the Amended Offering will be used to fund costs
associated the Environmental Assessment Application, development
expenses of the Companies Schaft Creek and Arizona projects, 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, Alberta and an operations office in Vancouver, British
Columbia. 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 and filed on www.sedar.com.
Copper Fox holds title and a 100% working interest in the Schaft Creek
project consisting of 56,267.54 hectares (139,040 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 ($85.34 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 47,933.19 hectares (118,445 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 intention to complete a Private Placement in the amount of
$3,000,000; use of proceeds from the intended Private Placement; the
delivery of a "Positive Bankable Feasibility Study" (as defined) and
the timing and exercise of "earn back options" potential existence and
size of mineralization within the Schaft Creek project; estimated
timing and amounts of future expenditures; geological interpretations
and potential mineral recovery processes.
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 acceptance by Teck of the positive Feasibility Study as a
"Positive Bankable Feasibility Study" (as defined); the commencement of
the 120 day period for Teck to exercise its earn back rights; that
expenditures have been incurred in accordance with the Teck Option
Agreement and in Company's expected quantum; 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: the Private Placement may not close on the terms currently
anticipated, or at all; Copper Fox may not use the proceeds from this
Private Placement as disclosed herein; Teck may not accept that the
delivery of the positive Feasibility Study constitutes delivery of a
"Positive Bankable Feasibility Study" as defined pursuant to the terms
of the Teck Option Agreement; the 120 day period that Teck has to
exercise its earn back rights may not have commenced; the
"Expenditures" may not constitute Expenditures as defined in the Teck
Option Agreement in the quantum anticipated by Copper Fox, 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 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 or Catherine Henderson, CFO at 1-403-264-2820.