CALGARY, Oct. 22 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) announced today that the Company has completed a non-brokered private placement financing of $2,000,000 CDN in funds (the "Offering").
Details of the Offering
The Offering consisted of 23,188,406 Units at a purchase price of $0.08625 per Unit, for aggregate gross proceeds of $2,000,000. Each Unit consists of one common share of Copper Fox and one-half common share purchase warrant of Copper Fox. Each whole warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN $0.115 prior to 5:00pm on the one year anniversary of the closing date of the Offering.
The Company paid commissions and/or finder's fees totaling $25,196, equating to 1.2% of the gross Offering and issued agents warrants totaling 292,133 to eligible dealers and arms-length third parties responsible for sourcing a portion of this financing. The agent's warrants will entitle the holders to acquire that number of common shares, exercisable at a price of $0.115 for a 12 month period. Agent's commissions and options are subject to applicable securities laws and require regulatory approvals. Shares acquired by the Offering placees, and shares which may be acquired upon the exercise of the share purchase warrants, will be subject to a hold period of four months plus one day from the date of completion of the financing in accordance with applicable securities legislation.
Mr. Ernesto Echavarria a director, insider and a control person of Copper Fox, as defined by the regulations of the TSX-Venture Exchange participated in 55% (or $1,100,000) of the Offering.
"As mentioned in our original financing announcement, completion of the Feasibility Study on the Schaft Creek deposit is our first priority" said Elmer Stewart President and CEO of Copper Fox. This financing and the anticipated early exercise of warrants, combined with the recent announcements from the federal and provincial governments to build the power line to unlock the great potential of British Columbia's northwest support management's commitment to complete the Feasibility Study of the Schaft Creek deposit as fast as prudently possible."
About Copper Fox
Copper Fox is a Canadian-based resource company listed on the TSX-Venture Exchange (CUU). The Company's activities are focused exclusively on the Schaft Creek deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox holds the Schaft Creek property pursuant to an option agreement with Teck Resources Limited ("Teck) and has earned a direct 70% interest in the Schaft Creek Property. The Company may acquire up to a 93.4% direct and indirect interest in the property, subject to certain back-in rights to Teck.
The Schaft Creek Project consists of 20,932 hectares situated in northwest British Columbia. The Company released the results of a preliminary feasibility study ("PFS") on the Schaft Creek deposit on September 15, 2008. The PFS outlined a minable reserve of 812 million tonnes, a production rate of 100,000 tonne of ore per day utilizing open pit mining methods. The report indicated Schaft Creek could produce 4.762 billion pounds of Copper, 255.1 million pounds of molybdenum, 4.493 million ounces of gold and 32.480 million ounces of silver over a 22.6 year mine life.
On behalf of the Board of Directors
Elmer Stewart P. Geol. MSc.
President and CEO
This press release does not constitute an offer to sell, or a solicitation of an offer to sell, any of the foregoing securities in the United States. None of the foregoing securities have been and, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The TSX Venture Exchange has not reviewed the contents of this news
release and accepts no responsibility for the adequacy or the accuracy
Cautionary Note Regarding Forward-Looking Information
This news release includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated dates for receipt, commencement or completion of permits, approvals, construction, production and other milestones; anticipated results of drilling programs, scoping, prefeasibility and feasibility studies and other analyses; anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. 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. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. 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 Copper Fox's expectations include: 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups 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 Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.
SOURCE Copper Fox Metals Inc.
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