Copper Fox Metals Inc. - Second Quarter Results - Three and Six Months Ended April 30, 2008
15:48 EDT Tuesday, June 03, 2008
globeinvestor.com
CALGARY, June 3 /CNW/ - Copper Fox Metals Inc. (TSX Venture: CUU) announced today its second quarter financial results. The Company reports a loss of$719,874 (2007 - $540,473) for the three months ended April 30, 2008 and a loss of $1,318,428 (2007 - $948,275) for the six months ended April 30, 2008 . The Company increased expenditures on its Schaft Creek property by $1.4 million in the second quarter which represents accumulative expenditures in excess of$25,000,000 on the project. The Company improved its working capital position by $3,419,960 to $7,051,374 as a result of a successful non-brokered financing at the end of the second quarter. At the close of this financing on May 13, 2008 the Company increased its cash position to $11.9 million . "These new funds will be used to carry on with our efforts to complete a bankable feasibility study on the economic viability of Schaft Creek" saidGuillermo Salazar S., President & CEO of Copper Fox Metals Inc. Copies of the financial statements and notes thereof and related management discussion and analysis may be obtained on SEDAR atwww.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.
Second Quarter Overview
During the second quarter the Company spent $1.4 million on the Schaft Creek Property and has now spent in excess of $25 million to date on this project as the Company works toward the completion of a bankable feasibility study.
On May 13, 2008 the Company completed a non-brokered "flow-through" and "non-flow-through" private placement financing of $11,771,565 (net of commissions and finder's fees of $626,665).
The Company is currently working on the completion of a pre-feasibility report on Schaft Creek that will evaluate the economic potential of a 100,000 tonne per day producing mine that is expected to be in production by the end of the year 2011.
The Company announced that it has become a member and contributor to a consortium that has commissioned an economic viability study for the Northwest Power Line along Highway 37 by the Mining Association of BC and the Northern Development Initiative Trust. The Company is confident that this study will confirm that there is a strong business case for the power line's development including power to support the Company's mine development plans at Schaft Creek.
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Selected Financial Information
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Net loss per share -
Net Loss basic and diluted
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2008
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First Quarter $ (598,554) $ (0.01)
Second Quarter $ (719,874) $ (0.01)
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2007
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First Quarter $ (407,802) $ (0.01)
Second Quarter $ (540,473) $ (0.03)
Third Quarter $ (2,255,109) $ (0.01)
Fourth Quarter $ (1,215,394) $ (0.02)
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2006
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Third Quarter $ (929,939) $ (0.02)
Fourth Quarter $ (192,356) $ (0.00)
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Liquidity
During the second quarter the Company's working capital position improved to $7,051,373 from $2,177,542 at the end of its first quarter. This was as a result of the Company raising additional capital through a non-brokered financing of flow -through and non-flow through common shares. The financing closed onMay 13, 2008 for net proceeds on the shares offered of $11,771,567 of which $5,598,739 were received at the end of the second quarter, April 30, 2008 . This financing will be used to complete the remaining drilling activity at Schaft Creek to provide the Company with additional core samples to be analyzed to complete its bankable feasibility study.
About Copper Fox
Copper Fox is a Canadian-based mining company listed on the TSX-Venture Exchange (CUU). The Company's activities are focused exclusively on the Schaft Creek mineral property, one of the largest undeveloped copper, gold, molybdenum and silver deposits inCanada. Schaft Creek comprises 20,932 hectares situated in northwest British Columbia, Canada at 57 degrees 21' N latitude and 130 degrees 59' W longitude on the eastern slopes of the Coastal Mountain ranges. Schaft Creek is situated between the highway and the glaciers in the area, and benefits from a significantly lower average rain and snowfall compared to the Pacific (west) side of these same ranges. The preliminary mining plan utilized in the Preliminary Economic Assessment is designed to extract a core of 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 of 0.663% and a waste to ore ratio of 1.66 over 31 years. The current NI 43-101 Mineral Resource has been estimated to be 1.4 billion tonnes, using a 0.20% CuEq cut off. Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited and may acquire up to a 93.4% direct and indirect interest in the property, subject to certain back-in rights to Teck Cominco. Copper Fox has delivered notice to Teck Cominco that it has surpassed the$15,000,000 threshold of qualifying expenditures and has earned a direct 70% interest in Schaft Creek. Title to the property is in good standing before the BC Government until 2018.
On behalf of the Board of Directors
Guillermo Salazar S, 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
thereof.
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 atwww.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.
For further information: Investor inquiries: Jason Shepherd, Phoenix Communications Group, Tel: 1-866-913-1910, E-mail: investor@copperfoxmetals.com |
