Copper Fox announces a $4,025,000 Private Placement Unit Offering, Insider commits to 100% Participation
July 23 2012 - 8:00AM
PR Newswire (Canada)
VANCOUVER, July 23, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper
Fox" or the "Company") is pleased to announce that subject to the
approval of the TSX-Venture Exchange, the Company intends to
complete a non-brokered private placement to raise up to CDN
$4,025,000 (the "Offering". The Offering is expected to consist of
3,500,000 units at a purchase price of $1.15 per unit, for
aggregate gross proceeds of $4,025,000. Each unit consists of one
common share 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 CDN$1.25 prior to 5:00
pm on the one year anniversary of the closing date of the Offering.
Mr. Ernesto Echavarria, a Director, insider and control person of
Copper Fox as defined by the regulators of the TSX-Venture
Exchange, has committed to participating in 100% of the Offering.
Monies raised from the Offering will be used to fund costs
associated with the recently announced purchase of the Van Dyke and
Sombrero Butte Copper projects in Arizona, the Schaft Creek
Feasibility Study and general operating expenses. About Copper Fox
Copper Fox is a Canadian-based resource development company listed
on the TSX Venture Exchange 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 and is expected to
be completed mid-late summer, 2012. Copper Fox holds title and a
100% working interest in the Schaft Creek project consisting of
52,843.34 hectares (130,579 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 ($76.6 million to April 30, 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
44,509 hectares (109,984 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 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 and mined. 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: 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 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. Copper
Fox Metals Inc. CONTACT: Investor line 1-866-913-1910 or J. Michael
Smith, EVP, at1-604-689-5080
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