VANCOUVER, Sept. 25, 2012 /CNW/ - Copper Fox Metals Inc. ("Copper Fox" or the "Company") (TSX-V: CUU) is pleased to announce its third quarter ended July 31, 2012 operating and financial results. The Company is working toward completing an Environmental Assessment Application and a Feasibility Study of the Schaft Creek mineral deposit. Copper Fox incurred a net loss for the third quarter of $1,328,328 ($0.00 loss per share) and incurred $5,273,240 in expenditures toward furthering the development of the Schaft Creek project. 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
During the Quarter, the Company achieved a significant milestone with the completion of an Updated Resource Estimate on the Schaft Creek deposit which includes the silver component in the mineralization. The inclusion of the silver component is expected to have a small but positive impact on the economics of the Schaft Creek deposit. In addition to the Updated Resource Estimate, work on the Feasibility Study concentrated primarily on preparation of the mine plan, a fundamental part of a feasibility study. A substantial portion of the other parts of the Feasibility Study were completed during the quarter. In addition there was continuing progress on the preparation of the Environmental Assessment Application together with discussions with BC Hydro.

Subsequent Event
Subsequent to July 31, 2012, the Company announced closing of a financing by an insider. The financing consisted of the issuance of 3,500,000 units at a purchase price of $1.15 per unit, for aggregate net proceeds of $4,025,000. Each unit consists of one common share of Copper Fox and one common share purchase warrant of Copper Fox. Each warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN $1.25 prior to 5:00 PM September 10, 2013.

Also subsequent to July 31, 2012, the Company announced that it intends to complete a non-brokered private placement to raise up to CDN $4,000,000. The Offering is expected to consist of 3,478,261 units at a purchase price of $1.15 per unit, for aggregate gross proceeds of $4,000,000. Each unit consists of one common share and one common share purchase warrant of Copper Fox. Each warrant entitles the holder thereof to acquire one common share of Copper Fox at an exercise price of CDN$1.25 prior to 5:00 pm on the one year anniversary of the closing date of the Offering.

In addition, subsequent to July 31, 2012, the Company announced the closing of the acquisition from Bell Copper Corporation ("Bell Copper") of 100% of Bell Copper's interests in the Sombrero Butte property located in Pinal County, Arizona (the "Sombrero Butte Copper Project") and all Bureau of Land Management (Arizona) lode claims (the "Van Dyke BLM Claims") that Bell Copper acquired which are adjacent to Bell Copper's interests in the Van Dyke copper deposit located in Miami, Arizona. Copper Fox acquired the Sombrero Butte Copper Project and Van Dyke BLM Claims by paying to Bell Copper the US-dollar equivalent of CDN$1,000,000 in cash and assuming Bell Copper's continuing obligations in respect of the Sombrero Butte Copper Project and Van Dyke BLM Claims.

Financial
During the quarter ended July 31, 2012 the Company received $4,480,000 in proceeds from a private placement and incurred an additional $5,062,568 of capital expenditures related to the Schaft Creek project.

Selected Financial Results

Liquidity and Capital Resources
Copper Fox operates in a capital intensive industry in which the demands for capital to finance exploration and development of its Schaft Creek property as well as corporate overheads generally occur far in advance of the project being put into production and generating cash flow. The financial requirements of Copper Fox related to development of the Schaft Creek project are mitigated to some extent by the obligations of Teck should they exercise their earn back right on the Schaft Creek property (see "Description of Business" above).

The Company's working capital deficit, defined as current assets less current liabilities, was $1,616,527 at July 31, 2012.

During the nine months ended July 31, 2012, the Company raised a total of $11,023,127 from the completion of private placements totaling $10,680,000, 725,000 options exercised for total proceeds of $248,002 and 126,833 warrants for total proceeds of $95,125. In addition, the Company issued 1,272,727 common shares for repayment of a loan of $1,400,000. Additional funds will be required to complete the current planned activities and the Company may need additional equity in order to develop the project (Refer to Teck Earn Back Option).

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 and an operations office in Vancouver and is involved in the exploration and development of the Schaft Creek copper-gold-molybdenum-silver deposit located in northwest British Columbia, Canada.

The Company is working on completing a feasibility study on the Schaft Creek mineral deposit, one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America. The feasibility study is being led by Tetra Tech Wardrop on a minimum 120,000 tpd open pit mine.

Copper Fox holds title and a 100% working interest in the Schaft Creek project consisting of 55,779.56 hectares (137,834 acres). Included in this total are the "Schedule A" mineral tenures originally conveyed to Copper Fox pursuant to the option agreement dated January 1, 2002 between Teck Resources Limited ("Teck") and Copper Fox (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 Copper Mines Limited ("Liard") and, together with the additional mineral tenures held by Copper Fox within the "Area of Interest" provided for in the Teck Option Agreement, and an earn back option held by Teck. On completion of the feasibility study, Copper Fox will earn 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 property is triggered upon delivery of a positive feasibility study to Teck. 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 ($84.9 million to July 31, 2012) and 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 47,445.22 hectares (117,240 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 Teck Option Agreement.

On behalf of the Board of Directors

Elmer B. Stewart
President & 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 recently completed updated resource estimate for the Schaft Creek deposit including the Paramount and Liard zones; the quantum and quality of porphyry style copper-gold-silver-molybdenum deposits at the Schaft Creek property; the scope and completion of the 2012 exploration program; conditions in the financial markets; the timing and completion of a the Feasibility Study; the scope and timing of work on the outstanding sections of the Feasibility Study; completion of an Environmental Assessment Application; the regional mineral potential of the mineral claims acquired by Copper Fox in 2012; the potential to find additional porphyry style copper deposits within the Schaft Creek property; the acquisition of Bell Copper's Sombrero Butte property in Arizona and the pending acquisition of Bell Copper's Van Dyke property in Arizona; ongoing obligations of Copper Fox in connection with the Van Dyke and Sombrero Butte acquisitions; the acquisition of additional mineral tenures in 2012; expected capital requirements to continue planned activities; expected sources and the adequacy of required capital resources; the timing and scope of expected diamond drilling; potential existence and size of mineralization within the Schaft Creek project; estimated timing and amounts of future expenditures and "earn-back" options; geological interpretations and potential mineral recovery processes. Information concerning measured mineral resources, indicated mineral resources and inferred mineral resources also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined.

In connection with the forward-looking information contained in this news release, Copper Fox has made numerous assumptions, regarding, among other things: the potential mineralization in the Schaft Creek deposit; 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; the continued financing of the Feasibility Study and Copper Fox' operations; the anticipated analytical results of the current drilling and metallurgical testing programs. 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 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 (including properties in Arizona), or contain anticipated mineralization, or mineralization of any significance at all; the Feasibility Study may not be completed within the contemplated time frame, or at all; the Environmental Assessment Application may not be obtained 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; the possibility that the Van Dyke acquisition may not complete 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.