Welcome To the Copper Fox Metals Inc. HUB On AGORACOM

CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

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Message: Insider Ownership and Unsolicited Offers

This is one of the main reasons why I have invested my equity into Copper Fox: the high insider ownership. What needs to be understood is, with directors and managers having so much skin in the game this will improve the overall performance of the executives which in theory should bring maximum value to shareholders. This is why Copper Fox is a sound and safe investment as our company will never receive a hostile bid like many resource companies out there within the industry. In connection to overall rarity and value, Copper Fox remains in a top class. This high insider ownership (57%) prevents us from a hostile bid from a mining major. Many people say they have invested in this company due to the old agreement but I have invested my money in this company for other reasons and the main factor is the high insider ownership.

My other reasons for becoming a shareholder in this company are:

- Favourable jurisdiction of a corporation operating in Canada (pro-mining country)

- The rare and valuable asset (Schaft Ceek mine- one of the biggest deposits in the world)

- The connection and relationship to a mining major (Teck Resources)

- The de-risking factor for a company that has no financing issues and cash in the bank

- The exploration potential and favourable environment to Schaft Creek obtaining the EAC

In my quest for due diligence and gathering research to decide which corporation should get my investment capital, I factored in all these reasons to pick CUU!

To prove my case I will use Augusta Resources who do not have the luxury of high insider ownership and are therefore open to an attack with a low-ball offer:

http://www.augustaresource.com/News/News-Releases/News-Release-Details/2014/Augusta-Board-unanimously-recommends-shareholders-reject-Hudbays-Unsolicited-Offer/default.aspx

This latest news release dating February 24, 2014 which is a 2 day old announcement explains alot about a asset's intrinsic value and relationship to share price. The management team is advising the shareholders to reject the unsolicited offer as it does not reflect the true value of the company. The reasons why are:

In making this recommendation the Board considered a number of factors including the following:

  • The Unsolicited Offer fails to recognize the strategic value of Augusta's Rosemont project.
    a) Rosemont is a scarce, large scale, construction ready copper asset.
    b) Rosemont is located in a safe, politically stable and highly desirable jurisdiction.
    c) Rosemont is a low capital intensity, low cost project.
    d) Rosemont offers expansion and exploration potential.

  • The timing of the Unsolicited Offer is highly opportunistic given that permitting is nearing completion and construction at theRosemontproject is imminent.
    a) Augusta has received seven of the eight major permits for theRosemontproject and the Board is confident that the last major permit, the Clean Water Act 404 permit, will be issued by the end of the second quarter of 2014.
    b) The Board is confident that theRosemontproject will be fully financed, and that construction will commence, in mid-2014.
    c) The Board believes that the Unsolicited Offer is timed to deprive Augusta shareholders of the full and fair value of theRosemontproject.

  • The value of the Unsolicited Offer is significantly below implied multiples of precedent base metal transactions.

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Augusta's Executive Chairman, said, "The unsolicited offer is grossly inadequate and does not come close to recognizing the full and fair value of Augusta and the world-class Rosemont project. It not only is opportunistic, failing to compensate Augusta's shareholders adequately at a time when the Company is at an inflection point of significant value creation, but it replaces this lost value with an increased exposure to risk. Our Board rejects this low ball bid, and recommends that our shareholders do not tender their common shares."

If you examine this quote you will realize that the management team needs to try and convince the shareholders of the company to not agree to the low-ball offer! Copper Fox will never have this problem of trying to persuade its shareholders to reject a hostile bid because we got Mr. EE who owns over half the shares in the corporation. Thank God for that in my opinion. The benefits of that are:

High insider ownership= no hostile bid

No hostile bid= no low-ball offer

No low-ball offer= management trying to maximize shareholder value

Maximum shareholder value= Mr. EE understands value of an asset rather premium on a share price

Mr. EE= Safe, sound, profitable, and de-risked investment

To conclude my rant for today, I am extremely proud to say I have invested in this company because of the high rare insider ownership in this company. This single factor alone will bring the highest value for my shares once the final chapter is written for this investment. Now, there are a few other reasons why I have provided my investment capital to this company which is also important to note and reflect on as those factors in itself should bring a "fair value" offer for the Schat Creek asset. I am so thrilled that Mr. EE has the final decision on what the buyout value will be because if it was not for him we would have already been sold at this moment for pennies on the dollar. If we did not have this high insider ownership then shareholders who enjoy and get excited over 30-40% premiums to the 20-day moving average would win and agree to sell their shares to a mining major such as Teck or Hudbay Minerals in such undervalued market conditions. The CUU shareholders that would not mind a $1 or less per share would proudly take a low-ball offer from a major....I say no thanks to that and thank God for Big EE.

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