🕐03.10.11 - 14:27 Uhr
COPPER FOX ANNOUNCES THE CLOSING OF $5,000,000 FINANCING BY AN INSIDER
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Copper Fox Announces the Closing of $5,000,000 Financing by an
Insider
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Vancouver, British Columbia - October 3, 2011 - Mr.
Elmer Stewart,
President and CEO of Copper Fox Metals Inc.
("Copper Fox" or "the
Company") (TSX-V: CUU) is pleased to announce the closing of a
financing by an insider for net proceeds of $5,000,000 ("Financing").
The Financing replaced the offering announced on September 7th and
September 12th, 2011 and consisted firstly of the issuance of 1,851,852
units at a purchase price of $1.35 per unit, for aggregate net proceeds
of $2,500,000.
Each unit consists of one common share of Copper Fox 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 CDN $1.50 prior to 5.00 PM September 30, 2012.
The second component of the Financing is for the amount of $2,500,000
previously advanced to the Company by Mr.
Echavarria, which amount was
settled by a shares for debt transaction through the issuance of
1,851,852 common shares of Copper Fox at an issue price of $1.35.
No
warrants were issued in respect of the shares for debt transaction.
Mr.
Echavarria is a Director, an insider, and a control person of
Copper Fox, as defined by the regulations of the TSX-Venture Exchange,
and has from time to time made advances to the Company, as required,
interest free and with no set terms of repayment.
Monies raised from the Financing have been used to fund costs
associated with completing the Feasibility Study which include
environmental studies, metallurgical testing, engineering studies, and
exploration expenses at Schaft Creek and pay down advances.
In accordance with applicable securities legislation securities issued
pursuant to the Financing are subject to a hold period of four months
plus one day from the date of completion of the Financing.
The TSX
Venture Exchange has confirmed its final acceptance in respect of the
offering and the shares for debt transaction in its bulletin to be
dated October 3, 2011.
No fees or commissions were paid as part of these transactions.
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(r) 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
21,024.96 hectare (51,954 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.
Tecks 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 ($63.6 million as of July 31, 2011) and arrange
for project financing, including the Copper Fox portion.
For full
details of the option please refer to the Companys website
www.copperfoxmetals.com.
In March 2011, the Company acquired mineral claims located adjacent to
the Schaft Creek property totalling 2,978.32 hectares (7,360 acres)
(the "March 2011 Mineral Claims") which are subject to a 2% Net Smelter
Return ("NSR").
Copper Fox has the option to repurchase, at any time,
one-half of the NSR on the March 2011 Mineral Claims for a total
purchase price of $3 million.
In September 2011, the Company acquired
mineral claims located adjacent to the Schaft Creek property totalling
6,115.11 hectares (15,111 acres) (the "September 2011 Mineral Claims")
which are subject to a 2% NSR.
Copper Fox has the option to
repurchase, at any time, one-half of the NSR on the September 2011
Mineral Claims for a purchase price of $1 million.
The March 2011
Mineral Claims and the September 2011 Mineral Claims are subject to
inclusion with the Schaft Creek project under the terms of the Area of
Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares
(9,753 acres) in the Liard Mining District of BC not subject to the
Teck earn-back.
For additional information contact: Investor line 1-866-913-1910 or J.
Michael Smith, EVP, at 1-604-689-5080
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 include statements about the
completion of the Feasibility Study; 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 Foxs 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: another deposit may never be discovered on
Copper Foxs property, or contain anticipated mineralization, or
mineralization of any significance at all; the Feasibility Study 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 Foxs 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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Copyright (c) 2011 COPPER FOX METALS INC.
(CUU) All rights reserved.
For more information visit our website at
http://www.copperfoxmetals.com/ or send
mailto:
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