Copper Fox Announces the Closing of a $4,005,000 Non Brokered Private
Placement Flow-Through Offering
Vancouver, British Columbia - December 15, 2010 - Mr. Elmer Stewart, President and CEO of Copper Fox Metals Inc. ("Copper
Fox" or the "Company") (TSX-Venture: CUU) announced today
that the Company has completed a non-brokered private placement financing of
$4,005,000 CDN in funds (the "Offering").
Details of the Offering
The Offering was completed in two tranches, each consisting of 2,250,000
Flow-Through shares at a purchase price of $0.90 per share totaling
$2,005,000. The total Offering raised gross proceeds of $4,005.000 from the
issuance of 4,450,000 Flow-Through shares. The company paid
commission/finder's fees totaling $234,300.00 and issued 260,333
non-transferable warrants. Each non-transferable warrant entitles the holder
to purchase one non Flow-Through common share at a purchase price of $0.75,
exercisable at any time until the close of business on the expiry of 24
months.
The first tranche was completed on November 26, 2010 with the MineralFields Group (a division of Pathway Asset
Management) based in Toronto, Vancouver, Montreal and Calgary. The second
tranche was completed on December 15, 2010 with Burgeonvest-Bick
Securities Limited, a financial services group headquartered in Toronto. In
accordance with applicable securities legislation, securities issued pursuant
to the Offering are subject to a hold period of four months plus one day from
the date of completion of each respective tranche of the Offering.
Funds generated from this financing will be used to advance the feasibility
study and include drilling programs, metallurgical testing and engineering
studies associated with the development of the Schaft
Creek Giant Porphyry Deposit.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the TSX-Venture
Exchange (CUU) focused on completing a Feasibility Study on the Schaft Creek deposit, one of the largest undeveloped
copper, gold, molybdenum and silver deposits in North America. Categorized as
a "giant porphyry deposit" this project is at the advanced
development stage with a Preliminary Feasibility Study ("PFS")
prepared by Samuel Engineering, Inc. of Denver, Colorado, in September 2008.
The results of the PFS were extremely "robust" reporting a NPV @ 8%
(before tax) of $2.8 billion dollars over a 23 year mine life. They
contemplated processing 100,000 tonne per day
("tpd") from an open pit mine using a
standard flotation recovery process. The PFS estimated the current Mineral
Resources (using a 0.2% copper equivalent cutoff) at Schaft
Creek includes; Measured Resources of 436.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02%
molybdenum and 1.55 g/t silver, Indicated Resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02%
molybdenum and 1.56 g/t silver. The PFS projected a recovery of 4.8 billion
pounds of copper, 255 million pounds of molybdenum, 4.5 million ounces of
gold and 32.5 million ounces of silver.
A Feasibility Study on a minimum 120,000 tpd open
pit mine is expected to be completed in early 2011.
Copper Fox holds title and a 100% working interest in a contiguous 21,025
hectares (51,954 acres) property which includes the Schaft
Creek deposit subject to certain royalty agreements and an earn back option. Teck Resources Limited has an option to acquire up to 75%
of the Schaft Creek project which is triggered upon
completion of the Feasibility Study. Should Teck
elect to exercise their option for the full amount (75%) they are required to
fund subsequent property expenditures up to a total of 400% of those incurred
by Copper Fox ($55 million to date) 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.
*United States investors are advised that current Mineral Resources are
not current Mineral Reserves and do not have demonstrated economic viability.
All figures are rounded to reflect the relative accuracy of the estimate and
in keeping with "best practice principals".
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 regarding the completion of a Feasibility Study on
the Schaft Creek deposit; statements concerning the
size and mineralization contained in the Schaft
Creek deposit; statements bout the stage of
development of the Schaft Creek deposit; statement
about the results of the PFS, including tones per day processing; statements
on the expected completion date of the Feasibility Study; statements about Teck's option to acquire up to 75% of the Schaft Creek project and subsequent funding and
financing. 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.
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. 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
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 minerlaization;
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.