Copper Fox announces third quarter results

VANCOUVER, Sept. 27, 2013 /CNW/ - Copper Fox Metals Inc. ('Copper Fox' or the 'Company') (TSX-V: CUU) is pleased to announce its third quarter 2013 operating and financial results.  Copper Fox had net income for the third quarter of $3,117,445 after reversal of a deferred tax liability of $3,887,762 and expenses of $770,317 ($0.01 income per share). The Company also incurred $853,074 in expenditures toward furthering the development of the Schaft Creek project, which is capitalized to mineral properties.  Copies of the financial statements, notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, the Company web site at www.copperfoxmetals.com or by contacting the Company directly.  All amounts are in Canadian dollars unless otherwise stated.

Highlights:
Schaft Creek Joint Venture
During the quarter ended July 31, 2013, the Company reached a significant milestone in the advancement of the Schaft Creek project when it announced the formation of the Schaft Creek Joint Venture with Teck Resources Limited ('Teck').  The Schaft Creek Joint Venture is held 75% by Teck and 25% by Copper Fox with Teck as the operator effective July 15, 2013. The Schaft Creek project is a large, undeveloped copper-molybdenum-gold-silver porphyry deposit located in northwestern British Columbia, Canada.

The terms and conditions of the Schaft Creek Joint Venture Agreement are set out in a News Release dated July 15, 2013.  The Schaft Creek Joint Venture agreement replaces and supersedes the 2002 option and property acquisition agreement between Teck and Copper Fox in connection with the Schaft Creek project.  The salient points of the Schaft Creek Joint Venture are:

• Teck will pay a total of $60 million in three direct cash payments to Copper Fox: $20 million upon signing the Schaft Creek Joint Venture Agreement, $20 million upon a Production Decision, $20 million upon the completion of the mine facility as well as reimburse Copper Fox $3.93 million which is equal to 75% of the expenses it incurred related to land acquisition and the Port of Stewart facility;

• Teck will fund 100% of the first $60 million in costs related to the Schaft Creek project incurred subsequent to formation of the Schaft Creek Joint Venture as well as Copper Fox's 25% share of any pre-production costs in excess of first $60 million. If the pre-production costs exceed $60 million, Copper Fox's 25% of these costs will reduced by an equivalent amount from the remaining two cash payments payable to Copper Fox. Teck will fund Copper Fox's pro-rata 25% share of any additional costs incurred prior to a production decision, if required, by way of loan without dilution to Copper Fox's 25% joint venture interest;

• Teck has agreed to use all reasonable commercial efforts to arrange project equity and debt financing for project capital costs of constructing a mining operation upon a production decision being made; Teck has agreed to fund Copper Fox's pro rata share of project capital costs by way of loan, if requested by Copper Fox, without dilution to Copper Fox's 25% joint venture interest.

Copper Fox's Interest in the Liard Shares
Copper Fox beneficially owns 21.07% of Liard Copper Mines Ltd ('Liard') shares.  Liard holds a 30% net proceeds interest in the Schaft Creek property.

Schaft Creek Joint Venture Drilling Program
The 2013 drilling program at the Schaft Creek Joint Venture is underway.  Teck as operator of the Schaft Creek Joint Venture currently has four diamond drills working on the Schaft Creek deposit.  The 2013 program is aimed at increasing the value of the Schaft Creek project.  The objective of the drill program is to test the extension to the east of the mineralization in the Paramount Zone and to collect additional geotechnical information for ongoing pit slope stability studies.

Corporate Activities
On formation of the Schaft Creek Joint Venture with Teck, Teck assumed operatorship of the Schaft Creek project resulting in a reduced level of activity at Schaft Creek for Copper Fox.  The reduced level of activity at Schaft Creek combined with other corporate activities has resulted in the following highlights:

a)	A tax free cash distribution of $0.0275/share as a return of capital was declared to shareholders of record on Tuesday, August 20, 2013 (the 'Record Date').  In general terms, a return of capital is not included in income by shareholders but does reduce the cost of a share for income tax purposes. The ex-distribution date for this distribution was Friday, August 16, 2013.  The distribution was paid to shareholders on Thursday August 29, 2013;
b)	The Company's wholly-owned subsidiary has been named "Desert Fox Copper Inc."‎ and is the primary operating vehicle responsible for acquisitions, and exploration and development activities;
c)	The subsidiaries of Desert Fox have been renamed as follows: Copper Fox Minerals Co. to Desert Fox Minerals Co., Copper Fox Van Dyke Co. to Desert Fox Van Dyke Co. and Copper Fox Sombrero Butte Co. to Desert Fox Sombrero Butte Co.;
c)	Copper Fox management and personnel have now been assigned to Desert Fox to support Desert Fox's new role as the primary operating vehicle for the Company, re-aligning overhead and providing savings and cost efficiencies;
d)	Desert Fox has commenced activities on its Van Dyke and Sombrero Butte copper projects located in Arizona.  Activities include compilation and review of over 6,000 boxes of core and samples from 72 drill holes, diamond drilling, environmental and geotechnical studies on the Van Dyke copper deposit and a surface and geophysical exploration program on the Sombrero Butte copper project;
e)	Desert Fox intends to acquire and invest in advanced polymetallic copper projects within North America to take advantage of unprecedented current market value opportunities.

Financial
During the nine months ended July 31, 2013 the Company received $4,318,000 in proceeds from private placements and the exercise of options, received $23.93 million in relation to the Schaft Creek Joint Venture and incurred an additional $3,183,463 of capital expenditures related to the Schaft Creek project.

Selected Financial Results

	Net Loss		Net (loss)/income per share - basic and diluted
2013
Third Quarter	$	3,117,445	$	0.01
Second Quarter	$	(697,664)	$	0.00
First Quarter	$	(525,595)	$	0.00
2012
Fourth Quarter	$	(812,324)	$	0.00
Third Quarter	$	(1,328,328)	$	0.00
Second Quarter	$	(514,292)	$	0.00
First Quarter	$	(554,254)	$	0.00
2011
Fourth Quarter	$	(1,018,883)	$	(0.01)

Liquidity and Capital Resources
At July 31, 2013, the Company had working capital of $25,448,521 and a deficit of $15,328,349 and had net income of $3,117,445 and $1,894,187 for the three and nine months ended July 31, 2013.

About Copper Fox
Copper Fox is a Canadian resource development company listed on the TSX-Venture Exchange (TSX-V: CUU) with offices in Calgary, Alberta and Vancouver, British Columbia.

Copper Fox holds a 25% interest in a joint venture (the 'Schaft Creek Joint Venture') with Teck Resources Limited ('Teck') on the Schaft Creek project in northwestern British Columbia.

In addition to Copper Fox's interest in the Schaft Creek Joint Venture, Copper Fox holds, through Desert Fox Copper Inc. ('Desert Fox') and its wholly-owned subsidiaries, mineral tenures located in Pinal County, Arizona (the 'Sombrero Butte Copper Project') and in Miami, Arizona (the 'Van Dyke Copper Project').

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 statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable 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 formation, terms and future activities of the Schaft Creek Joint Venture; further exploration and development of the Schaft Creek project; direct cash payments to Copper Fox upon a Production Decision and upon the completion date of a mine; financing to advance the Schaft Creek project, including project equity and debt financing for projected capital costs of construction of a mining operation; ongoing and planned activities on the Van Dyke and Sombrero Butte projects, including compilation and review of boxes of core and samples, diamond drilling, environmental and geotechnical studies and surface and geophysical exploration programs;  the intention of Desert Fox to acquire and invest in advanced polymetallic copper projects within North America; expected capital requirements to continue planned activities; expected sources and the adequacy of required capital resources; geological interpretations and potential mineral recovery processes.

In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things: the geological, metallurgical, engineering, 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 continued financing of Copper Fox and Desert Fox's operations.  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 Schaft Creek Joint Venture may not result in a Production Decision being made, or the construction of a mine; further exploration and development of the Schaft Creek property may not occur as expected; cash payments to Copper Fox may not be paid by Teck in the quantum or timing expected, or at all; financing commitments may not be sufficient to advance the Schaft Creek project as expected, or at all; the possibility that future obligations with respect to the Sombrero Butte property may not be met on a timely basis, or at all; planned activities for the Van Dyke and Sombrero Butte properties many not commence as currently planned, or at all; current resources estimates may never be obtained by the Company for the Van Dyke and Sombrero Butte properties; fluctuations in metal 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 and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs; and uncertainty of meeting anticipated program milestones.

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 on these mining projects please refer to the Company's web site at www.copperfoxmetals.com .

For additional information contact: Investor line 1-866-913-1910.