Canadian resource development company Copper Fox Metals (CVE:CUU) announced Monday a $4.03 million private placement unit offering, with proceeds to go toward funding the recently purchased Van Dyke and Sombrero Butte Copper projects and the Schaft Creek feasibility study.
Copper Fox intends to complete a non-brokered private placement of
3,500,000 units at a purchase price of $1.15 per unit, for gross
proceeds of $4.03 million.
The company said that Ernesto Echavarria, a director and insider of
the company, has committed to participate in 100 per cent of the
Each unit will consist of one company common share and one common
share purchase warrant, with each warrant entitling the holder to
acquire one more share of Copper Fox at a price of $1.25, within one
year of the closing date.
Gross proceeds will also go toward other general operating expenses.
Copper Fox is focused on the exploration and development of the
Schaft Creek copper-gold-molybdenum-silver deposit in northwest British
The company is currently working on completing a feasibility study
for the project, one of the largest undeveloped copper, gold, molybdenum
and silver deposits in North America.
The study is being led by Tetra Tech Wardrop on a minimum 120,000 tonne per day open pit mine, and is anticipated to be completed mid-late summer in 2012.
Earlier this month, the company announced that it will purchase the
Van Dyke copper deposit, and Sombrero Butte copper project in Arizona
from Bell Copper (CVE:BCU) for $2 million in cash.
Highlights of the deal include a historical resource of 112 million
tonnes with an average grade of 0.52 per cent copper, estimated to
contain 1.2 billion pounds of copper at the Van Dyke deposit.
Meanwhile, Copper Fox said that the Sombrero Butte property contains
several clusters of copper bearing breccia pipes, which elsewhere in the
district host economic deposits.
Twenty nine of 34 holes drilled to test eight breccia pipes
intersected significant intercepts of copper mineralization over core
intervals ranging from two metres to 72 metres with average copper
grades from 0.37 to 5.85 per cent.