VANCOUVER, March 25, 2013 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce that it has entered into a facilities study agreement (the "Facilities Study Agreement") with the British Columbia Hydro and Power Authority ("BC Hydro") in connection with the proposed power supply to the Company's Schaft Creek project. The Facilities Study Agreement sets forth the terms and conditions for BC Hydro to perform a facilities study to assess the requirements to connect the Schaft Creek project to the forthcoming BC Hydro Bob Quinn substation and the associated system reinforcements.
Pursuant to the Facilities Study Agreement, Copper Fox has requested transmission voltage service (69,000 kV and above) at the Schaft Creek project and BC Hydro will conduct a facilities study (the "Study") consisting of: (i) conducting preliminary engineering design to develop equipment specifications; (ii) developing a project plan that describes the Schaft Creek interconnection project and includes a schedule for implementation of detailed engineering, procurement, construction, testing and commissioning; (iii) developing a +/-30% cost estimate for implementation of the Schaft Creek interconnection project, and (iv) developing internal (BC Hydro) documentation for financial approvals to proceed with the Schaft Creek interconnection project. In order to conduct the Study, Copper Fox will pay a required deposit to BC Hydro. Copper Fox previously submitted a system impact study request to BC Hydro; an interconnection queue position was assigned to the Schaft Creek project and the system impact study was conducted. The queue position is used to prioritize study work and allocate interconnection costs. The Study is expected to be completed on or before May 31, 2014 and is estimated to cost in excess of $1 million to complete.
Upon completion of the Study and following presentation, review and acceptance of the Study, Copper Fox expects to sign a facilities agreement whereby BC Hydro would then implement interconnection work, including detailed design and engineering, procurement for major equipment and construction and commissioning of the facilities. Upon entering a facilities agreement, Copper Fox would provide financial commitment to BC Hydro in the form of cash payment for the basic transmission extension and security for the system reinforcement portion. Part of the implementation for the interconnection work that BC Hydro would undergo includes installing revenue metering equipment. Prior to energization, BC Hydro and Copper Fox would execute an electricity supply agreement. The average timeline from execution of the facilities agreement to energization is six months to three years, depending on the complexity of the project and the resources available.
About the Northwest Transmission Line
The Northwest Transmission Line ("NTL") is an approximately 344-kilometre, 287 kV transmission line between Skeena Substation (near Terrace) and a new substation to be built near Bob Quinn Lake. The line and substation are scheduled for completion in the spring of 2014. The cost of the NTL is currently estimated at $561-617 million. The federal government has pledged $130 million and AltaGas (owner of Forrest Kerr IPP), is contributing $180 million. This leaves an unfunded portion of $251-307 million. There are several options to cover the unfunded portion. One option currently being considered is a capital contribution from the initial mines connecting to the NTL, on a pro-rata basis.
About Copper Fox
Copper Fox is a Canadian-based resource development company listed on the TSX Venture Exchange (TSX-V: CUU) with a corporate office in Calgary, AB and an operations office in Vancouver, BC. Its major asset is the Schaft Creek copper, gold, molybdenum and silver deposit located in northwestern British Columbia, Canada for which a positive Feasibility Study was recently completed and filed on www.sedar.com.
Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 56,267.54 hectares (139,040 acres). Included in this total are the "Schedule A" mineral tenures originally conveyed to Copper Fox pursuant to the Teck Option Agreement, which consist of 8,334.34 hectares (20,594 acres). The "Schedule A" mineral tenures are subject to a 3.5% Net Profits Interest held by Royal Gold, Inc., a 30% carried Net Proceeds Interest held by Liard and, together with the additional mineral tenures obtained by Copper Fox within the "Area of Interest" provided for in the Teck Option Agreement, an earn back option held by Teck. On completion of the Feasibility Study, Copper Fox earns Teck's 78% interest in Liard. Teck's earn back option to acquire either, 20%, 40% or 75%, of Copper Fox's interest in the Schaft Creek Project is triggered upon delivery of a "Positive Bankable Feasibility Study" (as defined) to Teck after which they have 120 days to make a decision. Should Teck elect to exercise its option for 75%, Teck is required to fund subsequent property expenditures up to a total of 400% of those incurred by Copper Fox ($85.34 million to December 31, 2012) and use its best efforts to arrange for project financing, including the Copper Fox portion. For full details of the Teck earn back option please refer to the Company's website www.copperfoxmetals.com.
The remainder of Copper Fox's registered interests in mineral tenures in British Columbia total 47,933.20 hectares (118,445 acres). These interests have been acquired by Copper Fox through mineral tenure acquisitions and mineral tenure purchase agreements subsequent to Copper Fox entering into the Teck Option Agreement. Certain portions of these registered mineral tenures are subject to inclusion within the Schaft Creek Project pursuant to the terms of the "Area of Interest" provision of the Teck Option Agreement.
Additionally the Company holds, through wholly-owned subsidiaries, mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte Copper Project') and in Miami, Arizona (the 'Van Dyke BLM Claims'). For further information on these mining projects please refer to the Company's web site at www.copperfoxmetals.com .
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 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 includes statements about the expected transmission voltage service forecasted for the Schaft Creek project, the expected timeline for completion of the facilities study, the expected costs to complete the facilities study, the acceptance of the facilities study, the expected execution of a facilities agreement, the expected timeline for completion of energization, the additional costs associated with electrical service, the expected timeline for completion of the NTL and the expected costs for the NTL.
In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things: the expected transmission voltage service forecasted for the Schaft Creek project, the expected timeline and costs for completion of the facilities study is accurate, that the facilities study will be accepted, that a facilities agreement will be entered into, the expected timeline and costs for completion of energization is accurate, and the expected timeline and costs for completion of the NTL is accurate. 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 expected transmission voltage service forecasted is inaccurate, the actual mineralization in the Schaft Creek deposit may not be as favourable as suggested; another deposit may never be discovered on Copper Fox's property, or contain anticipated mineralization, or mineralization of any significance at all; a detailed mine plan may not be completed in a timely manner, or at all; the possibility that future drilling on the Schaft Creek project may not occur on a timely basis, or at all; fluctuations in copper, the completed drill holes for which analytical results are not available may not return significant concentrations of either copper, gold, molybdenum or silver; commodity prices and currency exchange rates; conditions in the financial markets and overall economy may continue to deteriorate; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of the metallurgical testwork, the uncertainty of the 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.
SOURCE: Copper Fox Metals Inc.
For further information:
Investor line 1-866-913-1910 or J. Michael Smith, EVP, at 1-604-689-5080
