CALGARY, May 15 /CNW/ - Guillermo Salazar, President and CEO of Copper Fox Metals Inc. (TSX-V: CUU) announced today that the Company has completed a non-brokered "flow-through" and "non flow-through" private placement financing of $12,398,232.00 CDN.
Funds Generated from this financing will be used for metallurgical testing, engineering studies, road access, studies of power options and other costs expected to be incurred in the completion of the Schaft Creek Mineral Deposit Feasibility Study as well as general operating purposes. Copper Fox plans to develop a world class copper/gold/molybdenum/silver mineral deposit at Schaft Creek, BC.
Mr. Salazar said "the Company was proud of the team effort that mobilized the financial support of so many shareholders, both existing and new to Copper Fox under what is indeed a very challenging market." "This financing bodes well for the market's outlook for copper, gold, molybdenum and silver and for the Schaft Creek project itself," he added.
Details of the Offering
The flow-through portion of the Offering consisted of an aggregate 20,853,848 "Units" at a price of $0.45 per unit for a total of $9,384,232.00. Each flow-through unit consisted of one flow-through common share and one-half of a non flow-through common share purchase warrant. Each full warrant will entitle the purchaser to purchase one warrant share at a price of $0.65 per warrant share, exercisable at any time until the close of business on the date following the expiry of 12 months from the closing date. The non flow-through portion of the "Offering" consisted of an aggregate 7,535,000 "Units" at a price of $0.40 per unit for a total of $3,014,000.00. Each non flow-through unit consisted of one common share and one-half of a non flow-through common share purchase warrant. Each full warrant will entitle the purchaser to purchase one warrant share at a price of $0.60 per warrant share, exercisable at any time until the close of business on the date following the expiry of 12 months from the closing date.
The Company paid commissions and/or finder's fees totaling $626,665.46, equating to 5.0% of the gross offering, and issued finder's options totaling 1,006,589 to registered dealers and arms-length third parties responsible for sourcing investors for this financing. The finder's options will entitle the holders to acquire that number of common shares, exercisable at a price of $0.40 for a 12 month period. Finder's commissions and options are subject to applicable securities laws and obtaining required regulatory approvals.
About Copper Fox:
Copper Fox (CUU) is a Canadian-based mining company listed on the TSX-Venture Exchange. The Company has concentrated its project activities exclusively to the Schaft Creek mineral Deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Based on the Company's Preliminary Economic Evaluation (see News Release of January 14, 2008), the preliminary mining plan is designed to extract the core 713.3 million tonnes of a Measured and Indicated, 43-101 compliant, mineral resource grading 0.304% copper, 0.218 g/t gold, 1.77 g/t silver, and 0.020% molybdenum, for a copper equivalent (based on the study's Case 2 metal pricing) of 0.663% and a waste to ore ratio of 1.66 over 31 years, within the current NI 43-101 Mineral Resource of 1.4 billion tonnes, using a 0.20% CuEq cut off. Currently the company is working on a pre feasibility study which will be based on a 100,000 tpd throughput scenario expected to be released this quarter.
Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited and has earned a direct 70% interest in the Schaft Creek Mineral Deposit. The Company may acquire up to a 93.4% direct and indirect interest in the property, subject to certain back-in rights to Teck Cominco.
On behalf of the Board of Directors
Guillermo Salazar, 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
Cautionary Note Regarding Forward-Looking Information
This news release includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated dates for receipt, commencement or completion of permits, approvals, construction, production and other milestones; anticipated results of drilling programs, scoping, prefeasibility and feasibility studies and other analyses; anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. 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. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox's expectations include: 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, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; 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; and other risks and uncertainties disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.