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