CUU Copper Fox Metals Inc

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:

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

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.