VANCOUVER, June 24, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the
"Company") (TSX-V: CUU) is pleased to announce its second quarter 2013
operating and financial results. Copper Fox incurred a net loss for the
second quarter of $697,664 ($0.00 loss per share) and incurred $1,057,414 in
expenditures toward furthering the development of the Schaft Creek project.
Copies of the financial statements, notes and related management discussion
and analysis may be obtained on SEDAR at www.sedar.com, the Company web site
at www.copperfoxmetals.com or by contacting the Company directly. All
amounts are in Canadian dollars unless otherwise stated.
As of the effective date of the MD&A, 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.
Environmental Assessment Application
Copper Fox continued to move the joint Schaft Creek Mine Project Environmental
Assessment Application (EA Application) and Environmental Impact Statement
(EIS) forward through the pre-Application stage of the environmental
assessment process during the past quarter.
Key aspects of the EA Application and EIS that were advanced during the past
quarter include work on waste rock management, water management planning and
water quality predictions.
Copper Fox also continued with the wildlife baseline monitoring with
completion of a winter moose aerial survey in March 2013.
Copper Fox anticipates completing the EA Application and EIS in Q3 2013.
Copper Fox expects the environmental assessment review process to be complete
within a year of submitting the EA Application and EIS.
In March 2013, the Company entered into a facilities study agreement (the
"Facilities Study Agreement") with the British Columbia Hydro and Power
Authority ("BC Hydro") in connection with the proposed electrical power supply
to the Company's Schaft Creek project. The Facilities Study Agreement sets
forth the terms and conditions for BC Hydro to perform a facilities study to
assess the requirements to connect the Schaft Creek project to the forthcoming
BC Hydro Bob Quinn electrical substation. The sustaining capital portion of
the Feasibility Study includes a $200 million provision for construction of BC
Hydro's Northwest Transmission Line to Bob Quinn.
During the six months ended April 30, 2013 the Company received $4,318,000 in
proceeds from private placements and the exercise of options, and incurred an
additional $1,057,414 of capital expenditures related to the Schaft Creek
Selected Financial Results
Net Loss Net (loss)/income per share -
basic and diluted
Second Quarter $ (697,664) $ 0.00
First Quarter $ (525,595) $ 0.00
Fourth Quarter $ (812,324) $ 0.00
Third Quarter $ (1,328,328) $ 0.00
Second Quarter $ (514,292) $ 0.00
First Quarter $ (554,254) $ 0.00
Fourth Quarter $ (1,018,883) $ (0.01)
Third Quarter $ (504,862) $ 0.00
Liquidity and Capital Resources
Copper Fox operates in a capital intensive industry in which the demands for
capital to finance exploration and development of its Schaft Creek property as
well as corporate overheads generally occur far in advance of the project
being put into production and generating cash flow. The financial
requirements of Copper Fox related to the potential development of the Schaft
Creek project are mitigated to some extent by the obligations of Teck should
they exercise their earn back right on the Schaft Creek property (readers
should refer to 'Description of Business' on page 2).
The Company's working capital was $4,004,473 at April 30, 2013 inclusive of an
increase to deposits relating to an agreement on the Schaft Creek property and
an increase in accounts receivable with respect to a tax credit claimed.
During the six months ended April 30, 2013, the Company raised a total of
$4,318,000 from the completion of private placements totaling $4,153,000 and
194,118 options were exercised for total proceeds of $165,000. Additional
funds will be required to complete the current planned activities and the
Company may need to issue additional equity in connection with any development
of the project (refer to Teck Earn Back Option).
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, AB and an
operations office in Vancouver, BC. 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 SEDAR at www.sedar.com.
Copper Fox holds title and a 100% working interest in the Schaft Creek project
consisting 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. 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 (119,515 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
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 the expected transmission voltage service forecasted for the
Schaft Creek project, the expected timeline for completion of the facilities
study, the expected costs to complete the facilities study, the acceptance of
the facilities study, the expected execution of a facilities agreement, the
expected timeline for completion of energization, the additional costs
associated with electrical service, the expected timeline for completion of
the NTL and the expected costs for the NTL.
In connection with the forward-looking information contained in this news
release, Copper Fox has made numerous assumptions, regarding, among other
things: the expected transmission voltage service forecasted for the Schaft
Creek project, the expected timeline and costs for completion of the
facilities study is accurate, that the facilities study will be accepted, that
a facilities agreement will be entered into, the expected timeline and costs
for completion of energization is accurate, and the expected timeline and
costs for completion of the NTL is accurate. 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 expected transmission voltage service forecasted is
inaccurate, 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.
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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CO: Copper Fox Metals Inc.
ST: British Columbia
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-0- Jun/24/2013 15:50 GMT
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