Copper Fox announces a $3,000,000 Private Placement Unit Offering.
CALGARY, Sept. 7, 2011 /CNW/ --
Insider commits to 100% participation in the Offering.
CALGARY, Sept. 7, 2011 /CNW/ - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ('Copper Fox' or the 'Company') (TSX-V: CUU) 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 $3,000,000 CDN in funds (the 'Offering'). The
Offering is expected to consist of 2,000,000 units at a purchase price
of $1.50 per unit, for aggregate gross proceeds of $3,000,000. Each
unit consists of one common share of Copper Fox and one-half common
share purchase warrant of Copper Fox. Each whole warrant entitles the
holder thereof to acquire one common share of Copper Fox at an exercise
price of CDN $1.75 prior to 5:00pm on the one year anniversary of the
closing date of the Offering.
Mr. Ernesto Echavarria a director, an insider and a control person of
Copper Fox, as defined by the regulations of the TSX-Venture Exchange,
has committed to participating in 100% of the Offering.
'This financing commitment combined with direct advances already
provided to the company by Mr. Echavarria demonstrate his strong
commitment to the Schaft Creek project' says Elmer Stewart, President
and CEO of Copper Fox.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the
TSX-Venture Exchange (CUU-TSX-V). Copper Fox was recently recognized by
TSX Venture Exchange Inc. as a member of the distinguished TSX Venture
50® group where it had the distinction of being ranked first overall
for 2010.
The Company is working on completing a feasibility study on the Schaft
Creek deposit, one of the largest undeveloped copper, gold, and
molybdenum deposits in North America. The feasibility study is being
led by Wardrop, A Tetra Tech Company on a minimum 120,000 tpd open pit
mine and is expected to be completed during the fourth quarter 2011.
Copper Fox holds title and a 100% working interest in a contiguous
24,003.5 hectare (59,311 acre) property which includes the Schaft Creek
deposit subject to certain royalty agreements, a 30% carried interest
held by Liard Copper and an earn back option held by Teck Resources
Limited ('Teck'). Copper Fox is currently earning a 78% interest in
Liard Copper from Teck. Teck's earn back option to acquire 20%, 40% or
75% of the Copper Fox interest in the Schaft Creek project is triggered
upon completion of a positive 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 ($61.8 million as of June 30, 2011) 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.
Additionally Copper Fox holds mineral claims totaling 3,947 hectares
(9,752 acres) in the Liard Mining District of BC not subject to the
Teck earn-back.
On behalf of the Board of Directors
Elmer Stewart P. Geol. MSc.
President and CEO
The TSX Venture Exchange has not reviewed the contents of this news
release and accepts no responsibility for the adequacy or the accuracy
thereof.
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 about the intention
to complete and the details concerning a private placement offering;
the recently completed resource estimate for the Schaft Creek deposit;
the receipt and filing of a National Instrument 43-101 compliant report
related to the updated resource estimate the timing and scope of
expected diamond drilling; the completion of the Feasibility Study and
Environmental Assessment application for the development of the Schaft
Creek project; 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 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.
In connection with 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; and the anticipated analytical results of the current drilling
program. 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 financing may not close or
close on the terms currently contemplated by Copper Fox; the actual
mineralization in the Schaft Creek deposit may not be as favourable as
suggested by the updated resource estimate; another deposit may never
be discovered on Copper Fox's property, or contain anticipated
mineralization, or mineralization of any significance at all; the
Feasibility Study or the Environmental Assessment 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 mineralization; the possibility that future drilling
on the Schaft Creek project may not occur on a timely basis, or at all;
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.
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