Copper Fox Metals Announces 2019 Second Quarter Operating and Financial Results
TSX VENTURE: CUU
Calgary, Alberta--(Newsfile Corp. - June 28, 2019) - Copper Fox Metals Inc. (TSXV: CUU) (OTC Pink: CPFXF) ("Copper Fox" or the "Company") is pleased to announce that its unaudited interim consolidated April 30, 2019 financial statements 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 24.4% of the common shares outstanding.
For the six months ended April 30, 2019, Copper Fox had a net loss of $5,168,589 (April 30, 2018 - $705,682) which equated to $0.01 loss per share (April 30, 2018 - $0.00 loss per share). The net loss increased in Q2 2019 compared to Q2 2018 due to the impairment of the Eaglehead property.
During the six months ended April 30, 2019, the Company incurred $240,917 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 in this news release 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: "We are confident that the multi-disciplinary team assigned by the Schaft Creek Joint Venture ("SCJV") to further evaluate the identified improvement options will be successful in further defining a sound economic, technical and environmental base case project configuration for the next study phase. The progress at Van Dyke is encouraging and setting the groundwork for the possibility of completing an updated resource estimate for the project."
Q2 2019 Highlights
- The 2018-2019 sizing and infrastructure alternatives study to reduce project capital and operating costs was completed, and the Schaft Creek Joint Venture ("SCJV") selected the 133ktpa case scenario for further study in the remainder of 2019.
- The 2019 study will confirm the technical-engineering and economics of the identified engineering improvement options and the associated 133ktpa mine plan design.
- A review of permitting and environmental requirements for the newly identified engineering improvements, together with continued engagement with the Tahltan Nation, will commence in Q3 2019.
- In addition to the planned fieldwork to reinforce the project infrastructure's flood protection, a review of the site characteristics for the identified engineering improvement options (e.g., tailings storage, conveyance systems, ore and waste rock transport options, and mill location) will be completed in 2019.
- At Van Dyke, the analytical program (2,760 samples) returned an average 29% higher acid soluble copper concentrations over significantly thicker intervals than shown in the historical data base for the project.
- Copper Fox closed a non-brokered private placement, raising aggregate gross proceeds of $1,339,140 through the sale of 12,174,000 units (each a "Unit") at a price of $0.11 per Unit. Mr. Ernesto Echavarria, a director, insider and a control person of the Company (as defined by the policies of the TSX Venture Exchange) purchased 8,182,000 Units.
- Application to obtain approval from State authorities to a conduct work program on the Sombrero Butte project has been submitted.
- The TSX-V has accepted the applications to extend warrants issued on June 30, 2016 and July 27, 2017 for a further one-year term extending their respective expiry dates to June 30, 2020 and July 27, 2020. The June 9, 2016 warrants expired on June 9, 2019.
Elmer B. Stewart, MSc. P. Geol., President of Copper Fox, is the Company's non-independent, nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed and approves the scientific and technical information disclosed in this news release.
Selected Financial Results
|April 30, 2019||January 31, 2019||October 31, 2018||July 31, 2018|
|3 months ended||3 months ended||3 months ended||3 months ended|
|Loss before taxes||$||10,357,166||$||192,708||$||256,899||$||620,441|
|Comprehensive loss per share, basic and diluted||0.02||0.00||0.00||0.00|
|April 30, 2018||January 31, 2018||October 31, 2017||July 31, 2017|
|3 months ended||3 months ended||3 months ended||3 months ended|
|Loss before taxes||$||541,914||$||213,774||$||400,188||$||395,888|
|Comprehensive (gain)/loss per share, basic and diluted||(0.00||)||0.00||(0.00||)||0.00|
As at April 30, 2019, the Company's cash position was $1,297,843 (October 31, 2018 - $938,311).
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 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: additional work on the Van Dyke project with the possibility of completing an updated resource estimate for the project; reducing capital and operating costs of the Schaft Creek project; conducting a review of the site characteristics of potential revisions to key infrastructure elements of the Schaft Creek project in 2019; commencing a field program that includes assessing ground conditions at the proposed process facility and tailings facility locations, formulation of an environmental approach to the project at the Schaft Creek project in the third quarter; and reinforcing the existing flood protection for the Schaft Creek camp, improving the drill-core storage facilities, and other field-related activities as well as ongoing work with the Tahltan Nation in 2019.
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 work on the Van Dyke project, may not be completed as planned or at all; the timing and scope of further work on the Schaft Creek project may not be completed as planned or at all; ongoing work with the Tahltan First Nation may not occur as planned 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.