Copper Fox acquires 100% interest in Schaft Creek Project
Copper Fox Metals Inc. announce that Teck Resources Limited (“Teck”) has transferred its ownership in the Schaft Creek Project to Copper Fox pursuant to an agreement between the parties dated January 1, 2002 (the “Agreement”). The Schaft Creek Project comprises the Liard, Paramount and West Breccia mineral deposits (the “Schaft Creek deposit”) contained within the 21,025 contiguous hectares (or 51,954 acres) of land conveyed by Teck. Copper Fox has also acquired 3,947 hectares of land for mine planning and access purposes bringing its total land holding to 24,972 hectares (or 61,706 acres) in the Schaft Creek area.
Copper Fox now holds a 100% interest in the Schaft Creek Project, subject to a 30% net proceeds interest royalty held by Liard Copper Mines Limited (“Liard”) and Teck’s earn-back options. Teck owns 78% of Liard which equates to a 23.4% indirect interest in the Schaft Creek Project (“the indirect interest”). Under the Agreement Copper Fox can also acquire Teck’s Liard shareholding (indirect 23.4% interest in the Schaft Creek Project) by completing a Positive Bankable Feasibility Study (as defined in the Agreement) on the Schaft Creek deposit thereby increasing its direct and indirect ownership in the Schaft Creek Project to 93.4%. Teck may at any time elect to exercise its earn-back option and upon receipt of the Positive Bankable Feasibility Study on the Schaft Creek deposit, Teck must elect within 120 days to make an election to: i) exercise its earn-back option, ii) retain a 1% net smelter return royalty, or iii) receive shares of Copper Fox to a value of $1,000,000.
The earn-back options allow Teck the right to elect to acquire a 20%, a 40%, or a 75% project interest from Copper Fox by respectively incurring either 100%, 300% or 400% of Copper Fox’s expenditures on the Schaft Creek project under the Agreement. In the event Teck elects to earn-back a 75% interest in the Schaft Creek Project, Teck will also be responsible for arranging Copper Fox’s share of project financing.
“This transaction represents a milestone achievement for Copper Fox says Elmer Stewart CEO and President. The Copper Fox team is working “flat out” to complete the feasibility on this large copper, gold, molybdenum and silver resource by the latter part of 2010. The critical path required for development of the Schaft Creek deposit is finding considerable support from the Government of British Columbia, the Tahltan First Nation and local communities for developing the infrastructure necessary, such as the recently announced Northwest transmission power line which is key for the development of Schaft Creek”.
