VANCOUVER, June 24, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce its second quarter 2013 operating and financial
results. Copper Fox incurred a net loss for the second quarter of
$697,664 ($0.00 loss per share) and incurred $1,057,414 in expenditures
toward furthering the development of the Schaft Creek project. Copies
of the financial statements, notes and related management discussion
and analysis may be obtained on SEDAR at www.sedar.com, the Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian
dollars unless otherwise stated.
Highlights:
Feasibility Study
As of the effective date of the MD&A, discussions are continuing between
the Company and Teck Resources Limited ("Teck") regarding Teck's
back-in to the Schaft Creek property. Discussions with Teck commenced
following the Company's completion of a National Instrument 43-101
technical report pertaining to a feasibility study on the Schaft Creek
Mineral Deposit. As disclosed in the Company's news release dated
February 4, 2013, the feasibility study has been filed and is available
on SEDAR (www.sedar.com). There can be no assurance that the discussions with Teck will lead to
Teck exercising any of its earn back options nor that the Company and
Teck will enter into a definitive joint venture agreement as
contemplated under the Teck Option Agreement.
Environmental Assessment Application
Copper Fox continued to move the joint Schaft Creek Mine Project
Environmental Assessment Application (EA Application) and Environmental
Impact Statement (EIS) forward through the pre-Application stage of the
environmental assessment process during the past quarter.
Key aspects of the EA Application and EIS that were advanced during the
past quarter include work on waste rock management, water management
planning and water quality predictions.
Copper Fox also continued with the wildlife baseline monitoring with
completion of a winter moose aerial survey in March 2013.
Copper Fox anticipates completing the EA Application and EIS in Q3
2013. Copper Fox expects the environmental assessment review process
to be complete within a year of submitting the EA Application and EIS.
BC Hydro
In March 2013, the Company entered into a facilities study agreement
(the "Facilities Study Agreement") with the British Columbia Hydro and
Power Authority ("BC Hydro") in connection with the proposed electrical
power supply to the Company's Schaft Creek project. The Facilities
Study Agreement sets forth the terms and conditions for BC Hydro to
perform a facilities study to assess the requirements to connect the
Schaft Creek project to the forthcoming BC Hydro Bob Quinn electrical
substation. The sustaining capital portion of the Feasibility Study
includes a $200 million provision for construction of BC Hydro's
Northwest Transmission Line to Bob Quinn.
Financial
During the six months ended April 30, 2013 the Company received
$4,318,000 in proceeds from private placements and the exercise of
options, and incurred an additional $1,057,414 of capital expenditures
related to the Schaft Creek project.
Selected Financial Results
|
|
|
|
Net Loss
|
Net (loss)/income per share -
basic and diluted
|
2013
|
|
|
Second Quarter
|
$
|
(697,664)
|
$
|
0.00
|
First Quarter
|
$
|
(525,595)
|
$
|
0.00
|
2012
|
|
|
Fourth Quarter
|
$
|
(812,324)
|
$
|
0.00
|
Third Quarter
|
$
|
(1,328,328)
|
$
|
0.00
|
Second Quarter
|
$
|
(514,292)
|
$
|
0.00
|
First Quarter
|
$
|
(554,254)
|
$
|
0.00
|
2011
|
|
|
Fourth Quarter
|
$
|
(1,018,883)
|
$
|
(0.01)
|
Third Quarter
|
$
|
(504,862)
|
$
|
0.00
|
|
|
|
Liquidity and Capital Resources
Copper Fox operates in a capital intensive industry in which the demands
for capital to finance exploration and development of its Schaft Creek
property as well as corporate overheads generally occur far in advance
of the project being put into production and generating cash flow. The
financial requirements of Copper Fox related to the potential
development of the Schaft Creek project are mitigated to some extent by
the obligations of Teck should they exercise their earn back right on
the Schaft Creek property (readers should refer to 'Description of
Business' on page 2).
The Company's working capital was $4,004,473 at April 30, 2013 inclusive
of an increase to deposits relating to an agreement on the Schaft Creek
property and an increase in accounts receivable with respect to a tax
credit claimed.
During the six months ended April 30, 2013, the Company raised a total
of $4,318,000 from the completion of private placements totaling
$4,153,000 and 194,118 options were exercised for total proceeds of
$165,000. Additional funds will be required to complete the current
planned activities and the Company may need to issue additional equity
in connection with any development of the project (refer to Teck Earn
Back Option).
About Copper Fox
Copper Fox is a Canadian-based resource development company listed on
the TSX Venture Exchange (TSX-V: CUU) with a corporate office in
Calgary, AB and an operations office in Vancouver, BC. Its major asset
is the Schaft Creek copper, gold, molybdenum and silver deposit located
in northwestern British Columbia, Canada for which a positive
Feasibility Study was recently completed and filed on SEDAR at www.sedar.com.
Copper Fox holds title and a 100% working interest in the Schaft Creek
project consisting of 56,701.44 hectares (140,112 acres). Included in
this total are the "Schedule A" mineral tenures originally conveyed to
Copper Fox pursuant to the Teck Option Agreement, which consist of
8,334.34 hectares (20,594 acres). The "Schedule A" mineral tenures are
subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30%
carried Net Proceeds Interest held by Liard and, together with the
additional mineral tenures obtained by Copper Fox within the "Area of
Interest" provided for in the Teck Option Agreement, an earn back
option held by Teck. For full details of the Teck earn back option
please refer to the Company's website www.copperfoxmetals.com.
The remainder of Copper Fox's registered interests in mineral tenures in
British Columbia total 48,367.10 hectares (119,515 acres). These
interests have been acquired by Copper Fox through mineral tenure
acquisitions and mineral tenure purchase agreements subsequent to
Copper Fox entering into the Teck Option Agreement. Certain portions of
these registered mineral tenures are subject to inclusion within the
Schaft Creek Project pursuant to the terms of the "Area of Interest"
provision of the Teck Option Agreement.
Additionally the Company holds, through wholly-owned subsidiaries,
mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte
Copper Project') and in Miami, Arizona (the 'Van Dyke BLM Claims').
For further information on these mining projects please refer to the
Company's web site at www.copperfoxmetals.com .
On behalf of the Board of Directors
Elmer B. Stewart
President and 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 includes statements about the expected
transmission voltage service forecasted for the Schaft Creek project,
the expected timeline for completion of the facilities study, the
expected costs to complete the facilities study, the acceptance of the
facilities study, the expected execution of a facilities agreement, the
expected timeline for completion of energization, the additional costs
associated with electrical service, the expected timeline for
completion of the NTL and the expected costs for the NTL.
In connection with the forward-looking information contained in this
news release, Copper Fox has made numerous assumptions, regarding,
among other things: the expected transmission voltage service
forecasted for the Schaft Creek project, the expected timeline and
costs for completion of the facilities study is accurate, that the
facilities study will be accepted, that a facilities agreement will be
entered into, the expected timeline and costs for completion of
energization is accurate, and the expected timeline and costs for
completion of the NTL is accurate. 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 expected transmission voltage
service forecasted is inaccurate, the actual mineralization in the
Schaft Creek deposit may not be as favourable as suggested; another
deposit may never be discovered on Copper Fox's property, or contain
anticipated mineralization, or mineralization of any significance at
all; a detailed mine plan may not be completed in a timely manner, or
at all; the possibility that future drilling on the Schaft Creek
project may not occur on a timely basis, or at all; fluctuations in
copper, the completed drill holes for which analytical results are not
available may not return significant concentrations of either copper,
gold, molybdenum or silver; commodity prices and currency exchange
rates; conditions in the financial markets and overall economy may
continue to deteriorate; uncertainties relating to interpretation of
drill results and the geology, continuity and grade of mineral
deposits; uncertainty of the metallurgical testwork, the uncertainty of
the 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.
SOURCE: Copper Fox Metals Inc.
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080