Copper Fox Metals announces $4.03 mln private placement financing

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 offering.
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 Columbia, Canada.
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.