CALGARY, July 13 /CNW/ - Copper Fox Metals Inc. (TSX-V: CUU) announces that a Special Meeting of the shareholders of the Company held on Friday, July 10th at Calgary, Alberta has approved the private placement to Ernesto Echavarria to acquire 69,763,620 shares and 69,763,620 common share purchase warrants for gross proceeds of $3,924,204. The approval by the shareholders is the last of three transactions whereby Mr. Echavarria has acquired 88,888,889 shares and 88,888,889 purchase warrants of the Company for gross proceeds of $5,000,000 and becomes a control person of Copper Fox (as such term is defined in the TSX-Venture Exchange manual).
In addition to the $5,000,000 investment by Mr. Echavarria, an additional $1,000,000 private placement with the same terms and conditions has been fully subscribed.
The closing of this $6,000,000 Private Placement is expected to be completed today. Mr. Elmer Stewart; Chairman of the Board of Copper Fox stated that, "the Directors and Management team of Copper Fox are looking forward to working with Ernesto who brings a considerable number of years of experience and business acumen to the Corporation."
Mr. Echavarria commented, "I decided to make this investment because I believe in the Company and its Schaft Creek project. I want to make sure they have enough funds on hand to complete the feasibility study and continue this operation without running out of money. The feasibility study is the MOST important thing to accomplish right now."
On closing this private placement, Copper Fox will eliminate its working capital deficiency and have sufficient funds on hand to resume operations. Over the next several weeks, the Corporation plans to finalize the strategy related to completion of the feasibility study required pursuant to the option agreement between Teck Resources Limited (Teck") and Copper Fox.
About Copper Fox
Copper Fox's activities are focused exclusively on Schaft Creek, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox has earned a direct 70% interest in Schaft Creek and pursuant to the option agreement with Teck may acquire an additional 23.4% interest (totaling 93.4% direct and indirect interest in the property) subject to certain back-in rights to Teck.
Schaft Creek is located within a contiguous land package that comprises 20,932 hectares situated in northwest British Columbia, Canada. On September 15, 2008, Copper Fox released the results of a preliminary feasibility study ("PFS") on the Schaft Creek deposit which contemplated processing 100,000 tonne of ore per day from an open pit. The PFS estimated that minable reserves at Schaft Creek to be 812 million tonnes and that this deposit could produce 4.8 billion pounds of copper, 255.1 million pounds of molybdenum, 4.5 million ounces of gold and 32.5 million ounces of silver over a 23 year mine life.
On behalf of the Board of Directors J Michael Smith, Executive Vice President 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 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.