Copper Fox secures shipping facilities for concentrate at Port of Stewart for Schaft Creek project
VANCOUVER, Oct. 13, 2011 /CNW/ - Mr. Elmer Stewart, President and CEO ofCopper Fox Metals Inc. ('Copper Fox' or 'the Company')
is pleased to announce completion of a Land Reservation Agreement ('the Agreement') between Copper Fox and Stewart Bulk Terminals Ltd. (Stewart Bulk) whichsecures the shipping requirements for storage and loading of concentrate received from the proposed Schaft Creek mine through the Port of Stewart, British Columbia.Mr. Stewart said 'With so many active projects located in this part of British Columbia, Copper Fox is delighted to have secured the facilities required to ship concentrate from the Schaft Creek project. This transaction with Stewart Bulk, who has over many years established a reputation for quality and efficient workmanship in the concentrate storage and loading services, represents another milestone in the development of the Schaft Creek project'.
Copper Fox has completed a number of trade-off studies related to the transportation; storage and loading of concentrate from the proposed Schaft Creek mine project. These studies clearly show the Port of Stewart has the required capacity and is the shortest distance to a deep water seaport thereby providing the most economic location from which to export concentrate. The Port of Stewart is strategically located in an area referred to as the Golden Triangle of British Columbia. The concentrate would be transported using a road from the Schaft Creek mine to highway 37, an upgraded road that is currently being used by other mines to deliver concentrate to the Port of Stewart.
The Agreement, which will be made available on www.sedar.com, reserves space for Copper Fox at the facilities of Stewart Bulk for construction of a concentrate storage warehouse to store up to 50,000 tonnes of concentrate and the use of the loading facilities at Stewart Bulk to meet the anticipated monthly loading requirements of the Schaft Creek Project. Pursuant to the terms and conditions of the Agreement, Copper Fox and Stewart Bulk are required to negotiate a Terminal Services Agreement that covers the terms and conditions for the storage and loading of bulk concentrate onto ocean going freighters for shipment of bulk concentrate. The Agreement is assignable to another party and covers a term from October 12, 2011 through April 1, 2019.
Pursuant to the terms of the Agreement, Stewart Bulk will construct the concentrate storage Warehouse on land that has been previously permitted for their current concentrate storage and loading operations. On the commencement of the shipments of concentrate from the Schaft Creek project, the Terminal Services Agreement will be in effect until Copper Fox or its predecessor permanently discontinues shipments of concentrate or until the Terminal Services Agreement is terminated.
About Copper Fox
Copper Fox is a Canadian based resource company listed on the TSX-Venture Exchange
Copper Fox holds title and a 100% working interest in a contiguous 21,024.96 hectare (51,954 acre) property which includes the Schaft Creek deposit subject to a 3.5% Net Profits Interest held by Royal Gold Inc., a 30% Net Proceeds Interest held by Liard Copper and an earn back option held by Teck Resources Limited ('Teck'). Copper Fox is currently earning a 78% interest in Liard Copper from Teck. Teck's earn back option to acquire 20%, 40% or 75% of the Copper Fox interest in the Schaft Creek project is triggered upon completion of a positive feasibility study. Should Teck elect to exercise its option for 75% they are required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($63.6 million as of July 31, 2011) and arrange for project financing, including the Copper Fox portion. For full details of the option please refer to the Company's website www.copperfoxmetals.com.
In March 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totalling 2,978.32 hectares (7,360 acres) (the 'March 2011 Mineral Claims') which are subject to a 2% Net Smelter Return ('NSR'). Copper Fox has the option to repurchase, at any time, one-half of the NSR on the March 2011 Mineral Claims for a total purchase price of $3 million. In September 2011, the Company acquired mineral claims located adjacent to the Schaft Creek property totalling 6,115.11 hectares (15,111 acres) (the 'September 2011 Mineral Claims') which are subject to a 2% NSR. Copper Fox has the option to repurchase, at any time, one-half of the NSR on the September 2011 Mineral Claims for a purchase price of $1 million. The March 2011 Mineral Claims and the September 2011 Mineral Claims are subject to inclusion with the Schaft Creek project under the terms of the Area of Interest provisions of the Teck Option Agreement.
Additionally Copper Fox holds mineral claims totaling 3,947.06 hectares (9,753 acres) in the Liard Mining District of BC not subject to the Teck earn-back.
On behalf of the Board of Directors
Elmer B. Stewart
President & 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 information' within the meaning of the Canadian 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 include statements about the construction of a 50,000 tonne concentrate storage warehouse at the facilities of Stewart Bulk, completion of the Feasibility Study; potential existence and size of mineralization within the Schaft Creek project; estimated timing and amounts of future expenditures and 'earn-back' options; geological interpretations and potential mineral recovery processes. 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.
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 the Feasibility Study; and the anticipated analytical results of the current drilling program. 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: another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance at all; the Feasibility Study may not be completed within the contemplated time frame, or at all; the possibility that the construction of the concentrate storage Warehouse may never be constructed, the shipment of concentrates from the Schaft Creek project or through the Port of Stewart may never commence or that the Terminal Services Agreement may never be negotiated, 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, and estimated economic return; 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
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.
Copper Fox Metals Inc.
CONTACT: Investor line 1-866-913-1910 or J. Michael Smith, EVP, at
1-604-689-5080
