NewsCopper Fox Metals Inc. to raise $10,000,000 in flow-through and non-flow-through funds
CALGARY, July 17 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-Venture CUU) is pleased to announce that, subject to the approval of the TSX-Venture Exchange, the Company intends to offer a brokered private placement of a maximum (Can. $10,000,000) in flow-through and non-flow-through funds (the Offering).
The flow-through component of this offering will be in the form of up to 4,800,000 common shares at a price of $1.25 per share (up to 60% of the total offering). The unit component will consist of up to 9,090,910 units at a price of $1.10 per unit. Each unit shall consist of one non-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 $1.60 per Warrant Share, exercisable at any time until the close of business on the date following the expiry of 18 months from the Closing Date provided that, if at any time following the expiration of four months from the Closing Date, the Closing Price of the Issuers Shares is equal to or greater than $1.75 per share for 15 consecutive trading days, the Issuer may give notice to the Purchaser in writing that the expiry date of the Warrants is being shortened to 30 days from the date of such notice.
The Company has engaged Evergreen Capital Partners Inc. as exclusive lead agent (the "Agent") for this private placement, subject to management's right to place up to $1,500,000 of the offering. The Company has agreed to the payment of an Agent's commission of 7% of the gross sales by the Agent, payable at closing. The Company will issue brokers warrants equal to 7% of the number of Unit shares and flow-through shares sold under the offering. Each broker warrant will entitle Evergreen to purchase one share at the Unit issue price at any time prior to the date that is 24 months from closing. In addition, the Company has granted the Agent an over-allotment option to purchase up to 15% of the number of flow-through shares and Units issued on closing, at the Issue Price.
Funds generated from this financing will be used to advance the feasibility study and include metallurgical testing, engineering studies, road access as well as general operating purposes associated with the ongoing development of the company's world class copper/gold porphyry project located at Schaft Creek British Columbia.
About Copper Fox
The Schaft Creek mineral deposit is one of the largest undeveloped copper deposits in Canada and the company is evaluating the feasibility of developing an open pit mine with a capacity of up to 100,000 tonnes per day and a mine life of 35 years. Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited whereby Copper Fox may acquire up to a 93.4% direct and indirect interest in the property. Title to the property is in good standing before the BC Government until 2015.
Schaft Creek is located in north western British Columbia, Canada, a stable socio-political environment. This area of northwest British Columbia is often referred to as the "Gold Copper Belt" and includes deposits like Galore Creek, and Red Chris. Copper Fox is in the Environmental Assessment Process required by the British Columbia and Canadian Governments for project permitting and is in continuous consultation with the Tahltan Nation.
On behalf of the Board of Directors
Guillermo Salazar S, President & 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.
This news release includes "forward-looking information" within the meaning of the Canadian securities laws. Statements, other than statements of historical fact, may constitute forward-looking information and include, without limitation: anticipated timing and content of upcoming work programs, geological interpretations, and potential mineral recovery processes; anticipated dates for receipt of permits, approvals and other milestones; anticipated results of drilling programs, scoping and feasibility studies and other analyses; future production, operating and capital costs; and operating or financial performance. 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. For any forward looking information given, management has assumed that the assay results it has received are reliable, and has applied geological interpretation methodologies which are consistent with industry standards. Forward-looking information involves various risks and uncertainties. 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 management's expectations include: fluctuations in 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 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 the Company's other filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on management's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.