Copper Fox Announces Q2 20 20 Operating and Financial Results
COPPER FOX ANNOUNCES
Q2
20
20
OPERATING AND FINANCIAL RESULTS
Calgary, Alberta
–
June 25
, 20
20
.
Copper Fox Metals Inc.
(“Copper Fox” or the “Company”) (TSX
-
V:
CUU
–
OTC
-
Pink: CPFXF)
is pleased to announce
its
three and six months ended April 30, 2020
un
a
udited
interim
consolid
ated
financi
al 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
”
) (
TSX
-
V:
DCOP
), of which the Company owns
24.
30
%
of the outs
tan
ding common shares
as
of
June 25
, 2
020
.
For the
six
months e
nded
April 30
, 20
20
,
Copper Fox had a
net loss of $
375,725
(
April
3
0
,
201
9
–
$
4,975,881
)
which equated to
$0.00 loss per share
(
April
3
0
, 201
9
-
$0.00
loss
per share
).
During the
six
months
ended
April
3
0
, 20
20
, the Compan
y incurred
$
152,313
in expenditures toward
furthering the
development of its
S
c
haft Creek,
Van Dyke
,
Sombrero Butte
and
Mineral Mountain
copper projects.
Copies of the financial statements, notes
,
and related management dis
cussion 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 rest
riction
s
related to the COVID
-
19
pandemic has
delay
ed
execution and completion
of planned 2020
activities.
During
Q2 2020
, work on
the
2019 Schaft Creek
R
eport
of
A
ctivities
by the Schaft Creek Joint Venture
has progressed and the
report is expected to be
finalized
mid
-
July.
Other activities d
uring
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
Ve
nture Exchange
a
s well
as
fil
ing
notices of planned Geological Field Operation
Plans
on its Arizona projects
in anticipation of
conducting limited field operation
s
in 2020
.
”
Q2
20
20
Highlights
:
Work continued on the 2019 Report of Activities for the Scha
ft 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 right
s
, title and
interest in
its Eaglehead copper project
located in the Liard Mining Division of northern British
Columbia.
T
he updated resource estimate for the Van Dyke project
resulted in classifying a significan
t
portion of the resource as Indicated, a
significant
increase in
soluble
copper metal
and higher
soluble copper recoveries
for the Van Dyke deposit.
2
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 p
urchase
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 Ventur
e 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 In
strument 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 p
roject 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 Esti
mates 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 issu
ed 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 TS
X 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 Na
tional Instrument
43
-
101
, Standards for Disclosure for
Mineral Projects,
and
has reviewed
and approves
the scientific and technical information
disclosed in
this news release.
3
Selected Financial
Results
Liq
uidity
As at
April
3
0
, 20
20
, the
Company had
$
1,35
7,566
in cash (October 31, 201
9
-
$
374,507
).
About Copper Fox
Copper Fox is a Tier 1 Canadian resource company listed on the TSX Venture Exchange (TSX
V: CUU)
focused on copper exploration and development in Canada and the United States. The principal as
sets
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
-
m
olybdenum
-
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
-
46
4
-
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 it
s 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 fo
rward
-
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
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
Net loss
375,725
205,572
188,765
270,252
Comprehensive (gain)/loss
(283,957)
139,438
257,746
528,250
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
Net (gain)/loss
1,974,306
195,607
(8,001)
620,441
Comprehensive (gain)/loss
1,732,808
197,607
226,205
456,739
Comprehensive (gain)/loss per share, basic and
diluted
0.00
0.00
0.00
0.00
4
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 ot
her 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 Coppe
r 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 strat
egic 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 s
ignificant 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 d
eteriorate; 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 securi
ties 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 su
ch
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.