(Source: Canada Newswire)
CALGARY, June 25 /CNW/ - Guillermo Salazar S., President and CEO of Copper Fox Metals Inc. (TSX Venture: CUU) announces the second quarter financial results. The Company reports a loss of $431,763 for the three months ended April 30, 2009 compared to a loss of $719,874 for the three months ended April 30, 2008. Copies of the financial statements and notes and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.
Highlights and Significant Items
Throughout the second quarter the Company continued to focus its attention on resolving its working capital deficiency by seeking new sources of financing, potential mergers with other companies and joint venture opportunities. The Company's ability to continue operations is dependent on obtaining required funds to repay its existing creditors, maintain its interest in the property and achieve success in developing commercial mineral interests. Given the Company's current inability to raise additional capital, the Company may need to avail itself of creditor protection to preserve its property value.
The Company is dependent upon the raising of capital in order to carry out its business plan. Additional sources of financing will also be necessary for the Company to continue exploration and development of its property. Management is seeking equity financing for the Company and although management has been successful in the past, there is no assurance that these initiatives will be successful in the future.
Subsequent to the Company's first quarter end, on February 26, 2009, the Company announced that they had entered into a binding letter of intent ("LOI") to merge with Lions Gate Metals Inc. This LOI was terminated on April 17, 2009.
On June 2, 2009 the Company announced that, subject to the approval of the TSX-Venture Exchange, the Company intends to complete a non-brokered private placement offering to raise up to $6,000,000 CDN in funds (the "Offering"). The Offering consists of 106,666,666 Units at a purchase price of $0.05625 per Unit, for aggregate gross proceeds of $6,000,000 ($14,000,000 should all warrants be exercised). Each Unit consists of one common share of the Company and one common share purchase warrant of the Company. Each warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $0.075 and expire one year from the closing date. As of June 25, 2009, the Company has received $1,598,749 net of selling costs of $59,434 related to this issue and will result in the issuance of 29,478,826 shares and warrants.
Ernesto Echavarria a businessman based in Culiacan, Sinaloa, Mexico, has committed to participating in $5,000,000 of this offering. Mr. Echavarria provided the law firm representing Copper Fox, McLeod & Company LLP (Legal Agent), with a completed subscription for 88,888,888 units of the Company together with a remittance of $5,000,000 which was placed into the law firm's trust account pending completion of the stages of approval. As of the date of this news release the following steps have been completed:
- The TSX-V has accepted and cleared the Personal Information Form filed
by Mr.
