Hey Meta,

Interesting comment - but I think Salazar somehow completely missed the big picture with CUU - especially looking at what Elmer has achieved in a relatively short time. Remember he tried to sell us off for around 10 cents/share to Lions Gate before EE came along!

I was certainly glad when he was out of the picture and think he had run out of resources - just have to look at where we are now to see that. Have a good long weekend.

Cheers Topaz.

Thursday, February 26, 2009
Lions Gate Metals Inc. and Copper Fox Metals Inc. Announce Business Combination

Vancouver, B.C. Canada, February 26, 2009 - Lions Gate Metals Inc. ("Lions Gate") (TSX-V: LGM) and Copper Fox Metals ("Copper Fox") (TSX-V: CUU) are pleased to announce that they have entered into a binding letter of intent ("LOI") containing the principal terms by which, subject to satisfaction of certain conditions, Lions Gate will acquire all of the issued and outstanding common shares of Copper Fox through a plan of arrangement or other form of business combination (the "Business Combination").

The LOI contemplates that each Copper Fox shareholder will receive 0.094 common shares of Lions Gate for every one common share of Copper Fox. For every one common share issued by Lions Gate to Copper Fox shareholders, they will also receive 0.5 warrants of Lions Gate. Each full warrant and payment of $2.00 will entitle the holder to purchase an additional share of Lions Gate for a period of five years. In addition, all outstanding convertible securities of Copper Fox will be exchanged for comparable convertible securities of Lions Gate in an amount and at exercise prices adjusted in accordance with the same exchange ratio.

From news article 2006:

Guillermo Salazar worked as a geologist for Hecla Mining at the Schaft Creek project during 1970-1973. During that time, his re-interpretation of the geological model of the deposit allowed Hecla Mining and Teck Cominco to expand the potential resources of the deposit from a maximum of 300 million tonnes to a minimum of 2.5 billion tonnes of the same grade. Today's geological models being used for the deposit are slight variations to the one developed by Salazar at that time.

Conclusion

From the table above we see that Copper Fox has a Julian Baring valuation ratio from 80 times down to 20 times the current market valuation, depending on the back-in scenario.

This corresponds to C$ 46.40 per share against its current price of C$0.58 (if we assume CUU retains its 93.4 % share of Schaft Creek). The worst case scenario, if Teck were to earn the maximum back-in of 75% still leaves a theoretical share price value of C$11.60 per share.

The extreme undervaluation of CUU is not unique in the market place, and comparative figures shown in the table above show quite a range of valuations depending on the project itself and also alternative back-in scenarios in the case of Schaft Creek.

http://www.24hgold.com/english/news-company-gold-silver-lions-gate-metals-inc-and-copper-fox-metals-inc-announce-business-combination.aspx?articleid=383999

http://www.resourceinvestor.com/2006/10/28/revaluing-copper-foxs-schaft-creek

http://copperinvestingnews.com/180-copper-fox-metals-moving-a-world-class-deposit-towards-production.html