Copper Fox Announces an Additional $2,000,000 Private Placement Unit Offering
CALGARY, Sept. 12, 2011 /CNW/ --
Insider commits to 100% participation in the Offering
CALGARY, Sept. 12, 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 an additional $2,000,000 (see news release dated
September 7, 2011) bringing the total private placement proceeds to
$5,000,000 CDN (the 'Offering'). The Offering is expected to consist of
3,333,334 units at a purchase price of $1.50 per unit, for aggregate
gross proceeds of $5,000,000. 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. The
proceeds of the offering will be used to fund the 2011 exploration
program and work on the feasibility study of the Schaft Creel project.
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 Copper Fox and 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, silver 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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