VANCOUVER,
June 5, 2013 /CNW/ - Copper Fox
Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU)
today provides an update on the Schaft Creek project and reports
that 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.
About Copper Fox
Copper Fox is a Canadian based resource development company listed
on the TSX-Venture Exchange (CUU-TSX-V) with a corporate office in
Calgary and an operations office
in Vancouver.
The Company announced the results of a
feasibility study on the Schaft Creek Mineral Deposit, on
December 21, 2012. Schaft Creek
is one of the largest undeveloped copper, gold, molybdenum and
silver deposits in North
America. The feasibility study was completed by Tetra
Tech Wardrop at a nominal 130,000 tonne per day open pit mine.
The Schaft Creek project consists 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. On completion of a "Positive Bankable Feasibility
Study" (as defined), 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" (as
defined) up to a total of 400% of those incurred by Copper Fox
($85.3 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 48,367.10, hectares (119,518 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.
Additionally the Company holds, through its
wholly-owned subsidiaries, mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte
Copper Project') and in Miami,
Arizona (the 'Van Dyke BLM Claims'). The Sombrero
Butte copper project consists of 60 claims (3,342 acres) located in
the Bunker Hill Mining District, 44 miles northeast of Tucson and the 35 Van Dyke BLM Claims (529
acres) located to the west of the Van Dyke copper deposit in
Miami.
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
includes statements about Teck's earn back options available under
the "Teck Option Agreement" dated January 1,
2002 on Schaft Creek; discussions regarding the terms
of a definitive option joint venture agreement; and Teck's
election to exercise its earn back option.
In connection with the forward-looking
information contained in this news release, Copper Fox has made
numerous assumptions. 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:
discussions with Teck may not lead to Teck exercising any of its
earn back options; the Company and Teck may not enter into a
definitive joint venture agreement; and Copper Fox may not proceed
or continue with activity on the Schaft Creek project as currently
planned.
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.