CALGARY,
Feb. 11, 2014 /CNW/ - Copper Fox
Metals Inc. ('Copper Fox' or the 'Company') (TSX-V: CUU) is
pleased to announce its annual 2013 operating and financial
results. Copper Fox had net income for the year of
$1,386,744 after reversal of a
deferred tax liability of $4,013,856
and expenses of $2,627,112
($0.00 income per share). The Company
also incurred $3,889,784 in
expenditures toward furthering the development of the Schaft Creek
project and $2,909,889 in
acquisitions and development of the Arizona projects, both of which are
capitalized to mineral properties. 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:
Schaft Creek Joint Venture
During the quarter ended July 31,
2013, the Company announced the formation of a joint venture
with Teck Resources Limited ('Teck') on the Schaft Creek
copper-gold-molybdenum-silver project located in northwestern
British Columbia, Canada.
Terms of the Joint Venture Agreement
- The Joint Venture agreement replaces and supersedes the 2002
option and joint venture agreement between Teck and Copper Fox in
connection with Schaft Creek.
- Teck holds a 75% interest and Copper Fox holds a 25% interest
in the Schaft Creek Joint Venture.
- Teck is the operator of the Schaft Creek Joint Venture.
- Teck will pay a total of $60
million in three direct cash payments to Copper Fox as
follows: $20 million upon signing the
Schaft Creek Joint Venture Agreement (paid July 15, 2013), $20
million upon a Production Decision, and $20 million upon the completion of the mine
facility.
- Teck will fund 100% of costs incurred prior to a production
decision up to $60 million; Copper
Fox's pro rata share of any pre-production costs in excess of
$60 million will be funded by Teck
and the direct cash payments payable to Copper Fox will be reduced
by an equivalent amount and Teck will fund any additional costs
incurred prior to a production decision, if required, by way of a
loan to Copper Fox to the extent of its pro rata share, without
dilution to Copper Fox's 25% joint venture interest.
- On signing, Teck reimbursed to Copper Fox $3.93 million for its Schaft Creek mineral tenure
acquisition costs and costs related to the Stewart Bulk Terminal
land reservation agreement.
- Management of the Joint Venture consists of two representatives
each from Teck and Copper Fox with voting proportional to equity
interests.
- Teck has agreed to use all reasonable commercial efforts to
arrange project equity and debt financing for project capital costs
of constructing a mining operation upon a production decision being
made; Teck has agreed to fund Copper Fox's pro rata share of
project capital costs by way of a loan, if requested by Copper Fox,
without dilution to Copper Fox's 25% joint venture interest.
Teck and Copper Fox's Interest in the Liard
Shares
Liard Copper Mines Ltd. ('Liard') holds a 30%
net proceeds interest in the Schaft Creek property. Seventy
eight percent of the shares of Liard are held by the Schaft Creek
Joint Venture. These shares are held in the name of Teck for
the benefit of Copper Fox (25%) and Teck (75%).
Corporate Activities
The formation of the Schaft Creek Joint Venture
combined with other corporate activities has resulted in the
following:
a) |
A tax free cash distribution of $0.0275/share as a return of
capital was declared to shareholders of record on Tuesday, August
20, 2013 (the 'Record Date'). The distribution was paid to
shareholders on Thursday, August 29, 2013; |
b) |
The Company's wholly-owned subsidiary has been named "Desert
Fox Copper Inc." and it is the primary operating vehicle
responsible for acquisitions and exploration and development
activities; |
c) |
The wholly-owned subsidiaries of Desert Fox have been renamed
as follows: Copper Fox Minerals Co. to Desert Fox Minerals Co.,
Copper Fox Van Dyke Co. to Desert Fox Van Dyke Co. and Copper Fox
Sombrero Butte Co. to Desert Fox Sombrero Butte Co.; |
c) |
Copper Fox management and personnel have been assigned to
Desert Fox to support Desert Fox's new role as the primary
operating vehicle for the Company, re-aligning overhead and
providing savings and cost efficiencies; |
d) |
With the lessening of activity at Schaft Creek and changes to
Copper Fox management the general and administrative expenses have
been significantly reduced; |
e) |
Desert Fox commenced activities on its Van Dyke and Sombrero
Butte copper projects located in Arizona. Activities include
compilation and review of over 6,000 boxes of core and samples from
72 drill holes, a detailed review of the environmental,
geotechnical and copper production data collected from the
historical work completed on the Van Dyke oxide copper
project. A surface mapping and sampling program was completed
on the Sombrero Butte project in preparation for a geophysical
exploration program; and |
f) |
Desert Fox is actively reviewing copper companies to either
acquire and/or invest in advanced poly-metallic copper projects
within North America to take advantage of unprecedented current
market value opportunities. |
Financial
During the year ended October 31,
2013 the Company received $4,964,250 in proceeds from private placements
and the exercise of options, received $24.66
million in relation to the Schaft Creek Joint Venture and
incurred an additional $3,889,784 of
capital expenditures related to the Schaft Creek project.
Selected Financial Results
|
|
|
|
|
|
|
Net Loss |
|
Net (loss)/income per
share - basic and diluted |
|
2013 |
|
|
|
|
Fourth Quarter |
$ |
(405,347) |
$ |
0.00 |
Third Quarter |
$ |
3,117,445 |
$ |
0.01 |
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 |
Liquidity and Capital Resources
At October 31, 2013, the Company had
working capital of $13,098,464, a
deficit of $15,835,791 and net income
of $1,386,744 for the year ended
October 31, 2013.
About Copper Fox
Copper Fox is a Canadian resource development company listed on the
TSX-Venture Exchange (TSX-V: CUU) with offices in Calgary, Alberta, Vancouver, British Columbia and, with its
wholly owned subsidiary Desert Fox, an office in Miami, Arizona.
Copper Fox holds a 25% interest in a joint
venture (the 'Schaft Creek Joint Venture') with Teck Resources
Limited ('Teck') on the Schaft Creek project in northwestern
British Columbia. On
January 23, 2013, a National
Instrument 43-101 technical report was completed on the Schaft
Creek copper-gold-molybdenum-silver project. The feasibility
study calls for a 130,000 tonne per day open pit mine with proven
and probable reserves of 940.8 million tonnes grading 0.27% copper,
0.19 g/t gold, 0.018% molybdenum and 1.72 g/t silver: (recoverable
copper equivalent 0.43%) with a 21 year mine life. The proven
and probable reserves are estimated to contain 5.6 billion pounds
of copper, 5.8 million ounces of gold, 363.5 million pounds of
molybdenum and 51.7 million ounces of silver.
In addition to Copper Fox's interest in the
Schaft Creek Joint Venture, Copper Fox holds, through Desert Fox
Copper Inc. ('Desert Fox') and its wholly-owned subsidiaries, the
Sombrero Butte copper project located in the Bunker Hill District,
Pinal County, Arizona and the Van
Dyke copper project located in the Globe-Miami District,
Gila County, Arizona. The
Van Dyke copper project is located adjacent to the mining
operations of BHP and Freeport McMoRan copper mining operations.
The Van Dyke copper deposit is reported to host a Historical
Estimate of 112 million tonnes grading 0.52% copper (approximately
1.2 billion pounds of copper at a 0.2% copper cut-off).
Desert Fox is preparing to conduct a verification drilling program
with the objective of upgrading the Historical Estimate to a
current mineral resource which would form the basis for a
Preliminary Economic Assessment for the Van Dyke copper deposit.
The Van Dyke copper deposit is considered to be similar to other
copper deposits in Arizona
currently being evaluated. The Sombrero Butte copper project
is located 9 miles east of the San
Manuel Mine (14 billion pounds of copper), and 2 miles south
of Redhawk Resources' Copper Creek project (7 billion pounds of
copper).
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 statements" and
"forward-looking information" (collectively, "forward-looking
information") within the meaning of applicable 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 formation, terms
and future activities of the Schaft Creek Joint Venture; direct
cash payments to Copper Fox upon a Production Decision and upon the
completion date of a mine; financing to advance the Schaft Creek
project, including project equity and debt financing for projected
capital costs of construction of a mining operation; a National
Instrument 43-101 Technical Report on the Schaft Creek project,
including the quantum of proven and probable reserves therein, a
130,000 tonne per day open pit mine and a 21 year mine life at
Schaft Creek; ongoing and planned activities on the Van Dyke and
Sombrero Butte projects, including compilation and review of boxes
of core and samples, review of the environmental, geotechnical and
copper production data collected from historical work, a
geophysical exploration program on Sombrero Butte, and a
verification drilling program with the objective of upgrading the
Historical Estimate to a current mineral resource which would form
the basis for a Preliminary Economic Assessment for the Van Dyke
oxide copper deposit; savings and cost efficiencies resulting from
the re-alignment of Copper Fox management and personnel assigned to
Desert Fox; the intention of Desert Fox to either acquire or invest
in advanced poly-metallic copper projects within North America; expected capital requirements
to continue planned activities; expected sources and the adequacy
of required capital resources; geological interpretations and
potential mineral recovery processes.
In connection with 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 Copper Fox and Desert
Fox's operations. 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 Schaft Creek Joint Venture may not result in a
Production Decision being made, or the construction of a mine;
further exploration and development of the Schaft Creek property
may not occur as expected; cash payments to Copper Fox may not be
paid by Teck in the quantum or timing expected, or at all;
financing commitments may not be sufficient to advance the Schaft
Creek project as expected, or at all; proven and probable reserves
at Schaft Creek may not be in the quantum as currently expected, or
result in economic mining thereof; an open pit mine (including
anticipated tonnes per day and mine life) may never be established
at Schaft Creek; the possibility that future obligations with
respect to the Sombrero Butte property may not be met on a timely
basis, or at all; planned activities for the Van Dyke and Sombrero
Butte properties many not commence as currently planned, or at all;
current resources estimates, and a Preliminary Economic Assessment
may never be obtained by the Company for the Van Dyke and Sombrero
Butte properties; fluctuations in metal 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 and uncertainty as to the availability
and terms of future financing; the possibility of delay in
exploration or development programs; and uncertainty of meeting
anticipated program milestones.
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.