VANCOUVER,
March 8, 2013 /CNW/ - Copper Fox
Metals Inc. ("Copper Fox" or the "Company") (TSXV: CUU) is
pleased to announce that subject to the approval of the TSX-Venture
Exchange, it has increased the size of its previously announced
non-brokered private placement from $2,500,000 to $3,000,000 (the "Amended Offering"). The Amended
Offering is expected to consist of up to 3,797,468 Units at a
Purchase Price of $0.79 per Unit, for
aggregate gross proceeds of up to $3,000,000. 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 $1.00 prior to 5:00
pm on the one year anniversary of closing of the
Offering.
Mr. Ernesto
Echavarria, a Director, insider, and control person of
Copper Fox as defined by the policies of the TSX-Venture Exchange,
has committed to 83%, or $2,500,000
participation in the Amended Offering. The Company intends to
place the remaining $500,000 of the
Amended Offering on a private placement basis.
Monies raised from the Amended Offering will be
used to fund costs associated the Environmental Assessment
Application, development expenses of the Companies Schaft Creek and
Arizona projects, and general
operating expenses.
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, Alberta and an operations
office in Vancouver, British
Columbia. 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
www.sedar.com.
Copper Fox holds title and a 100% working
interest in the Schaft Creek project consisting of 56,267.54
hectares (139,040 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 the Feasibility Study,
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 up to a total of 400% of those
incurred by Copper Fox ($85.34
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 47,933.19 hectares (118,445 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 www.copperfoxmetals.com.
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 intention to
complete a Private Placement in the amount of $3,000,000; use of proceeds from the intended
Private Placement; the delivery of a "Positive Bankable Feasibility
Study" (as defined) and the timing and exercise of "earn back
options" potential existence and size of mineralization within the
Schaft Creek project; estimated timing and amounts of future
expenditures; geological interpretations and potential mineral
recovery processes.
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 acceptance by Teck
of the positive Feasibility Study as a "Positive Bankable
Feasibility Study" (as defined); the commencement of the 120 day
period for Teck to exercise its earn back rights; that expenditures
have been incurred in accordance with the Teck Option Agreement and
in Company's expected quantum; 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. 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 Private Placement may not close
on the terms currently anticipated, or at all; Copper Fox may not
use the proceeds from this Private Placement as disclosed herein;
Teck may not accept that the delivery of the positive Feasibility
Study constitutes delivery of a "Positive Bankable Feasibility
Study" as defined pursuant to the terms of the Teck Option
Agreement; the 120 day period that Teck has to exercise its earn
back rights may not have commenced; the "Expenditures" may
not constitute Expenditures as defined in the Teck Option Agreement
in the quantum anticipated by Copper Fox, or at all; 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.
SOURCE Copper Fox Metals Inc.