Copper Fox Announces Q2 2020 Operating and Financial Results
Calgary, Alberta--(Newsfile Corp. - June 25, 2020) - Copper Fox Metals Inc. (TSXV: CUU) (OTC Pink: CPFXF) ("Copper Fox" or the "Company") is pleased to announce its three and six months ended April 30, 2020 unaudited interim consolidated financial statements and MD&A have been filed on SEDAR.
All of the Company's material subsidiaries are wholly owned, except for District Copper Corp. ("District"), of which the Company owns 24.30% of the outstanding common shares as of June 25, 2020.
For the six months ended April 30, 2020, Copper Fox had a net loss of $375,725 (April 30, 2019 - $4,975,881) which equated to $0.00 loss per share (April 30, 2019 - $0.00 loss per share).
During the six months ended April 30, 2020, the Company incurred $152,313 in expenditures toward furthering the development of its Schaft Creek, Van Dyke, Sombrero Butte and Mineral Mountain copper projects. Copies of the financial statements, notes, and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, the Company's web site at www.copperfoxmetals.com or by contacting the Company directly. All references to planned activities and technical information contained here have been previously announced by way of news releases. All amounts are expressed in Canadian dollars unless otherwise stated.
Elmer B. Stewart, President and CEO of Copper Fox stated, "The restrictions related to the COVID-19 pandemic has delayed execution and completion of planned 2020 activities. During Q2 2020, work on the 2019 Schaft Creek Report of Activities by the Schaft Creek Joint Venture has progressed and the report is expected to be finalized mid-July. Other activities during Q2 2020, included completion of the updated resource estimate for the Van Dyke project as well as progress on the acquisition of the Eaglehead copper project with receipt of conditional approval from the TSX Venture Exchange as well as filing notices of planned Geological Field Operation Plans on its Arizona projects in anticipation of conducting limited field operations in 2020."
Q2 2020 Highlights:
- Work continued on the 2019 Report of Activities for the Schaft Creek Joint Venture. The report is expected to be completed during the Q3 2020 (see News Release dated June 19, 2020).
- The Company entered into a property sales agreement with District, where District has agreed to sell to Northern Fox, a wholly owned subsidiary of Copper Fox, all of its rights, title and interest in its Eaglehead copper project located in the Liard Mining Division of northern British Columbia.
- The updated resource estimate for the Van Dyke project resulted in classifying a significant portion of the resource as Indicated, a significant increase in soluble copper metal and higher soluble copper recoveries for the Van Dyke deposit.
- Copper Fox closed its non-brokered private placement, to raise up to $1,800,000 in gross proceeds. The Offering raised gross proceeds of $1,723,240 through the sale of 28,720,669 units (a "Unit") at a price of $0.06 per Unit. Each Unit consisted of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share for an exercise price of $0.09 during the 36-month period after the closing of the Offering and $0.12 during the 12-month period thereafter. If the 20-day volume weighted average price of the common shares listed on the TSX Venture Exchange is above $0.15, the expiry date of the Warrants will be accelerated to a date that is 30 days after the first date such threshold is met.
Subsequent to the Period Ended:
- On May 5, 2020, Copper Fox reported that it filed on SEDAR; a National Instrument 43-101 Technical Report titled "Technical Report and Updated Resource Estimate for the Van Dyke Copper Project" dated May 4, 2020 prepared by Moose Mountain Technical Services which includes an updated resource estimation for the Van Dyke copper project located in the Globe-Miami mining district of Arizona (see news release dated March 25, 2020). The Technical Report concluded; potential for additional resources is extensive to the south and at depth and that soluble copper recovery of 90% should be achievable. The report recommended a combined eight-hole (4,500m) drilling, metallurgical, geotechnical and hydrogeological program estimated to cost US $2.13 million and additional engineering studies including a pilot ISCR test and updating Cost Estimates and Geotechnical and Water Management Studies at an estimated cost of US $10 million.
- On May 21, 2020, the Company announced its intention to extend the expiry dates of 24,549,665 outstanding warrants for one year. The warrants were originally issued on June 30, 2016, July 27, 2017, and June 14, 2018 respectively, in connection with private placements of units consisting of common shares and warrants of the Company. These warrants continue to be exercisable at their original exercise price. The TSX Venture Exchange consented to the extension of the expiry dates of the warrants on May 26, 2020.
- On May 21, 2020, District announced that it had received conditional approval from the TSX Venture Exchange for the proposed sale of the Eaglehead property to Northern Fox, a wholly owned subsidiary of Copper Fox Metals Inc.
- On June 19, 2020, Copper Fox provided an update on the Schaft Creek Joint Venture, progress on the acquisition of the Eaglehead copper project and filing of Geological Field Operations Plans to perform further exploration work on its 100% owned the Mineral Mountain and Sombrero Butte projects in Arizona.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company's non-independent, nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.
Selected Financial Results
|April 30, 2020||January 31, 2020||October 31, 2019||July 31, 2019|
|3 Months Ended||3 Months Ended||3 Months Ended||3 Months Ended|
|Loss before taxes||$||375,725||$||205,572||$||289,922||$||270,252|
|Comprehensive (gain)/loss per share, basic and diluted||(0.00||)||0.00||0.00||0.00|
|April 30, 2019||January 31, 2019||October 31, 2018||July 31, 2018|
|3 Months Ended||3 Months Ended||3 Months Ended||3 Months Ended|
|Loss before taxes||$||1,974,306||$||195,607||$||256,899||$||620,441|
|Comprehensive (gain)/loss per share, basic and diluted||0.00||0.00||0.00||0.00|
As at April 30, 2020, the Company had $1,357,566 in cash (October 31, 2019 - $374,507).
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSXV: CUU) focused on copper exploration and development in Canada and the United States. The principal assets of Copper Fox and its wholly owned Canadian and United States subsidiaries, being Northern Fox Copper Inc. and Desert Fox Copper Inc., are the 25% interest in the Schaft Creek Joint Venture with Teck Resources Limited on the Schaft Creek copper-gold-molybdenum-silver project located in northwestern British Columbia and a 100% ownership of the Van Dyke oxide copper project located in Miami, Arizona. For more information on Copper Fox's other mineral properties and investments visit the Company's website at http://www.copperfoxmetals.com.
For additional information please contact Lynn Ball at 1-844-464-2820 or 1-403-264-2820.
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 within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and forward-looking information within the meaning of the Canadian securities laws (collectively, "forward-looking information"). Forward-looking information in this news release include statements regarding: completing the 2019 Schaft Creek report; the mineral resource estimate for the Van Dyke project; the property sales agreement with District Copper on the Eaglehead project; and advancement of the Mineral Mountain and Sombrero Butte projects.
In connection with the forward-looking information contained in this news release, Copper Fox and its subsidiaries have made numerous assumptions regarding, among other things: the geological, 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 stability of economic and market conditions. 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 Company may decide to change its strategic focus; the timing and scope of further studies on the Schaft Creek Project; the proposed acquisition of the Eaglehead copper project may not be completed on a timely basis, or at all; exploration of the projects may not find copper mineralization in significant quantities or at all; the overall economy may deteriorate; uncertainty as to the availability and terms of future financing; copper prices and demand may fluctuate; currency exchange rates may fluctuate; conditions in the financial markets may deteriorate; and 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.
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