News Releases

News

June 25, 2009
Three and Six Months Ended April 30 2009

Calgary, Alberta - June 25, 2009 - Guillermo Salazar S., President and CEO of Copper Fox Metals Inc. (TSX Venture: CUU) announces the second quarter financial results. The Company reports a loss of $431,763 for the three months ended April 30, 2009 compared to a loss of $719,874 for the three months ended April 30, 2008. Copies of the financial statements and notes and related management discussion and analysis may be obtained on SEDAR at www.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.

Highlights and Significant Items

Throughout the second quarter the Company continued to focus its attention on resolving its working capital deficiency by seeking new sources of financing, potential mergers with other companies and joint venture opportunities. The Company's ability to continue operations is dependent on obtaining required funds to repay its existing creditors, maintain its interest in the property and achieve success in developing commercial mineral interests. Given the Company's current inability to raise additional capital, the Company may need to avail itself of creditor protection to preserve its property value.

The Company is dependent upon the raising of capital in order to carry out its business plan. Additional sources of financing will also be necessary for the Company to continue exploration and development of its property. Management is seeking equity financing for the Company and although management has been successful in the past, there is no assurance that these initiatives will be successful in the future.

Subsequent to the Company's first quarter end, on February 26, 2009, the Company announced that they had entered into a binding letter of intent ("LOI") to merge with Lions Gate Metals Inc. This LOI was terminated on April 17, 2009.

On June 2, 2009 the Company announced that, subject to the approval of the TSX-Venture Exchange, the Company intends to complete a non-brokered private placement offering to raise up to $6,000,000 CDN in funds (the "Offering"). The Offering consists of 106,666,666 Units at a purchase price of $0.05625 per Unit, for aggregate gross proceeds of $6,000,000 ($14,000,000 should all warrants be exercised). Each Unit consists of one common share of the Company and one common share purchase warrant of the Company. Each warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $0.075 and expire one year from the closing date. As of June 25, 2009, the Company has received $1,598,749 net of selling costs of $59,434 related to this issue and will result in the issuance of 29,478,826 shares and warrants.

Ernesto Echavarria a businessman based in Culiacan, Sinaloa, Mexico, has committed to participating in $5,000,000 of this offering. Mr. Echavarria provided the law firm representing Copper Fox, McLeod & Company LLP (Legal Agent), with a completed subscription for 88,888,888 units of the Company together with a remittance of $5,000,000 which was placed into the law firm's trust account pending completion of the stages of approval. As of the date of this news release the following steps have been completed:
  • The TSX-V has accepted and cleared the Personal Information Form filed by Mr. Ernesto Echavarria;
  • The first and second tranches of the private placement ($1,100,000) with Mr. Echavarria have closed;
  • A Special Meeting of Shareholders to approve the third tranche ($3,900,000) of the private placement to Mr. Echavarria is scheduled for 2:00 pm, July 10, 2009, at the Telus Convention Centre in Calgary and;
  • The additional $1.0 million of the private placement to the shareholders has been fully subscribed.
Selected Financial Information

 

�Net Loss

�Net (loss)/income per share - basic and diluted

2009

 

 

Second Quarter

�$��������������������������� (431,763)

�$�������������������������������� (0.00)��

First Quarter

�$���������������������� (29,135,359)

�$�������������������������������� (0.28)

2008

 

 

Fourth Quarter

�$��������������������������� 1,890,230

�$��������������������������������� 0.02

Third Quarter

�$������������������������ (1,307,512)

�$�������������������������������� (0.01)

Second Quarter

�$��������������������������� (720,878)

�$�������������������������������� (0.01)

First Quarter

�$��������������������������� (598,554)

�$��������� �����������������������(0.01)

2007

 

 

Fourth Quarter

�$������������������������ (1,215,394)

�$�������������������������������� (0.02)

Third Quarter

�$������������������������ (2,255,109)

�$�������������������������������� (0.01)


Liquidity

The Company had a working capital deficiency at October 31, 2008 of $2,059,026. This deficiency increased to $3,334,070 at April 30, 2009. This was as a result of the Company expenditures at the Schaft Creek mineral property and general and administrative expenses related to its Calgary and Vancouver offices.

The Company's ability to continue operations is dependent on obtaining required funds to repay its existing creditors, maintain its interest in the property and achieve success in developing commercial mineral interests. Given the Company's current inability to raise additional capital, the Company may need to avail itself of creditor protection to preserve its property value.

The Company is dependent upon the continued financial support of its creditors in order to carry out its business plan. Additional sources of financing will also be necessary for the Company to continue exploration and development of its property. Management is seeking equity financing for the Company and although management has been successful in the past, there is no assurance that these initiatives will be successful in the future.

The Company has announced a private placement offering of $6,000,000. This private placement provides for the settlement of outstanding creditor debts of approximately $3,622,000 at June 25, 2009 with the balance of the funds to be used for general corporate purposes and completion of its feasibility study on the Schaft Creek project.

Copper Fox is a Junior Resource Mining Company listed on the TSX-Venture Exchange (CUU). The company is involved in the exploration and development of a world-class copper/gold porphyry mineral deposit located in north western B.C. at Schaft Creek. Under the terms of an option agreement negotiated with Teck Cominco Limited, Copper Fox can acquire up to a 94.3% aggregate (direct and indirect) interest in the Schaft Creek mineral resource.

For further information please contact Jason Shepherd investor relations toll free at telephone 1 866 913 1910, Email: investor@copperfoxmetals.com or visit our web site at http://www.copperfoxmetals.com.


ON BEHALF OF THE BOARD OF DIRECTORS


Guillermo Salazar S., P. Geol.
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. 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, receipt of property titles, and potential mineral recovery processes; anticipated dates for receipt of permits, approvals and other milestones; anticipated results of drilling programs, feasibility studies and other analyses; anticipated availability and terms of future financing; 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. Additional information, about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its most recent annual and quarterly filings, filed with the securities regulatory authorities in Canada available 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. Additional information, about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its most recent annual and quarterly filings, filed with the securities regulatory authorities in Canada available at www.sedar.com.

  





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