COPPER FOX ANNOUNCES THE CLOSING OF A $4,005,000 NON BROKERED PRIVATE PLACEMENT FLOW-THROUGH OFFERING
December 16 2010 - 8:00AM
PR Newswire (Canada)
VANCOUVER, Dec. 16 /CNW/ -- VANCOUVER, Dec. 16 /CNW/ - Mr. Elmer
Stewart, President and CEO of Copper Fox Metals Inc. ("Copper Fox"
or the "Company") (TSX-Venture: CUU) announced today that the
Company has completed a non-brokered private placement financing of
$4,005,000 CDN in funds (the "Offering"). Details of the Offering
The Offering was completed in two tranches, each consisting of
2,250,000 Flow-Through shares at a purchase price of $0.90 per
share totaling $2,005,000. The total Offering raised gross proceeds
of $4,005.000 from the issuance of 4,450,000 Flow-Through shares.
The company paid commission/finder's fees totaling $234,300.00 and
issued 260,333 non-transferable warrants. Each non-transferable
warrant entitles the holder to purchase one non Flow-Through common
share at a purchase price of $0.75, exercisable at any time until
the close of business on the expiry of 24 months. The first tranche
was completed on November 26, 2010 with the MineralFields Group (a
division of Pathway Asset Management) based in Toronto, Vancouver,
Montreal and Calgary. The second tranche was completed on December
15, 2010 with Burgeonvest-Bick Securities Limited, a financial
services group headquartered in Toronto. In accordance with
applicable securities legislation, securities issued pursuant to
the Offering are subject to a hold period of four months plus one
day from the date of completion of each respective tranche of the
Offering. Funds generated from this financing will be used to
advance the feasibility study and include drilling programs,
metallurgical testing and engineering studies associated with the
development of the Schaft Creek Giant Porphyry Deposit. About
Copper Fox Copper Fox is a Canadian based resource company listed
on the TSX-Venture Exchange (CUU) focused on completing a
Feasibility Study on the Schaft Creek deposit, one of the largest
undeveloped copper, gold, molybdenum and silver deposits in North
America. Categorized as a "giant porphyry deposit" this project is
at the advanced development stage with a Preliminary Feasibility
Study ("PFS") prepared by Samuel Engineering, Inc. of Denver,
Colorado, in September 2008. The results of the PFS were extremely
"robust" reporting a NPV @ 8% (before tax) of $2.8 billion dollars
over a 23 year mine life. They contemplated processing 100,000
tonne per day ("tpd") from an open pit mine using a standard
flotation recovery process. The PFS estimated the current Mineral
Resources (using a 0.2% copper equivalent cutoff) at Schaft Creek
includes; Measured Resources of 436.5 million tonnes grading 0.30%
copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver,
Indicated Resources of 929.8 million tonnes grading 0.23% copper,
0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver. The PFS
projected a recovery of 4.8 billion pounds of copper, 255 million
pounds of molybdenum, 4.5 million ounces of gold and 32.5 million
ounces of silver. A Feasibility Study on a minimum 120,000 tpd open
pit mine is expected to be completed in early 2011. Copper Fox
holds title and a 100% working interest in a contiguous 21,025
hectares (51,954 acres) property which includes the Schaft Creek
deposit subject to certain royalty agreements and an earn back
option. Teck Resources Limited ("Teck") has an option to acquire
20%, 40% or 75% of the Schaft Creek project which is triggered upon
completion of the Feasibility Study. Should Teck elect to exercise
its option for 75% they are required to fund subsequent property
expenditures up to a total of 400% of those incurred by Copper Fox
($55 million to date) and arrange for project financing, including
the Copper Fox portion. For full details of the option please refer
to the Company's website www.copperfoxmetals.com. *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 principals". 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 include statements regarding the completion of a
Feasibility Study on the Schaft Creek deposit; statements
concerning the size and mineralization contained in the Schaft
Creek deposit; statements bout the stage of development of the
Schaft Creek deposit; statement about the results of the PFS,
including tones per day processing; statements on the expected
completion date of the Feasibility Study; statements about Teck's
option to acquire up to 75% of the Schaft Creek project and
subsequent funding and financing. 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. The forward-looking information contained in
this news release, Copper Fox has made numerous assumptions,
regarding, among other things: 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; and the continued
financing of the Feasibility Study. 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 Feasibility Study may not be completed within the
contemplated time frame, or at all; the possibility that the
analytical results from the core sampling does not return
significant grades of copper minerlaization; 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, 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. To view
this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/December2010/16/c5752.html
pInvestor line 1.866.913.1910 or J. Michael Smith, EVP, at 1 604
689 5080/p
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