VANCOUVER, March 25, 2013 /CNW/ - Copper Fox Metals Inc.
("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to
announce that it has 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 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 substation and the associated system
reinforcements.
Pursuant to the Facilities Study Agreement,
Copper Fox has requested transmission voltage service (69,000 kV
and above) at the Schaft Creek project and BC Hydro will conduct a
facilities study (the "Study") consisting of: (i) conducting
preliminary engineering design to develop equipment specifications;
(ii) developing a project plan that describes the Schaft Creek
interconnection project and includes a schedule for implementation
of detailed engineering, procurement, construction, testing and
commissioning; (iii) developing a +/-30% cost estimate for
implementation of the Schaft Creek interconnection project, and
(iv) developing internal (BC Hydro) documentation for financial
approvals to proceed with the Schaft Creek interconnection project.
In order to conduct the Study, Copper Fox will pay a required
deposit to BC Hydro. Copper Fox previously submitted a system
impact study request to BC Hydro; an interconnection queue position
was assigned to the Schaft Creek project and the system impact
study was conducted. The queue position is used to prioritize
study work and allocate interconnection costs. The Study is
expected to be completed on or before May
31, 2014 and is estimated to cost in excess of $1 million to complete.
Upon completion of the Study and following
presentation, review and acceptance of the Study, Copper Fox
expects to sign a facilities agreement whereby BC Hydro would then
implement interconnection work, including detailed design and
engineering, procurement for major equipment and construction and
commissioning of the facilities. Upon entering a facilities
agreement, Copper Fox would provide financial commitment to BC
Hydro in the form of cash payment for the basic transmission
extension and security for the system reinforcement portion.
Part of the implementation for the interconnection work that BC
Hydro would undergo includes installing revenue metering equipment.
Prior to energization, BC Hydro and Copper Fox would execute an
electricity supply agreement. The average timeline from
execution of the facilities agreement to energization is six months
to three years, depending on the complexity of the project and the
resources available.
About the Northwest Transmission Line
The Northwest Transmission Line ("NTL")
is an approximately 344-kilometre, 287 kV transmission line between
Skeena Substation (near Terrace) and a new substation to be built
near Bob Quinn Lake. The line and substation are scheduled for
completion in the spring of 2014. The cost of the NTL is currently
estimated at $561-617 million. The
federal government has pledged $130
million and AltaGas (owner of Forrest Kerr IPP), is
contributing $180 million. This
leaves an unfunded portion of $251-307
million. There are several options to cover the unfunded
portion. One option currently being considered is a capital
contribution from the initial mines connecting to the NTL, on a
pro-rata basis.
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 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 47,933.20 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 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.
SOURCE Copper Fox Metals Inc.