COPPER FOX ANNOUNCES the Closing of a $2,500,000 Financing by an Insider
VANCOUVER, Oct. 24, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the
"Company") (TSXV: CUU) is pleased to announce the closing of a previously
announced financing (September 10, 2012) by an insider for proceeds of
$2,500,000 (the "Financing").
The Financing consisted of the issuance of 2,173,913 units at a purchase price
of $1.15 per unit, for aggregate net proceeds of $2,500,000. 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 $1.25 prior to October 24,
Monies raised from the Offering will be used to fund costs associated the
Schaft Creek Feasibility Study, the Schaft Creek Environmental Assessment
Application 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.
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 Columbia, Canada.
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.
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 use of proceeds for the recently
completed 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
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 use the proceeds
from the recently closed Private Placement as disclosed herein; 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.
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080
SOURCE: Copper Fox Metals Inc.
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-0- Oct/24/2012 23:45 GMT
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