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%)

Free
Message: old numbers

Interesting info...everyone is guessing what the buy out price would be. I got this info from Canadian Junior Resource Stocks..I clicked on copper then Copper Fox showed up. Then I clicked on Details...and here it is below. ( Now keep in mind that these are old numbers but the new RE should blow the socks off this buy out number.

<!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} </style> <![endif]-->

Copper Fox Metals (TSX-V:CUU): A realistic look ahead (Nov 2010)

The Copper Fox Metals feasibility study I expect will be out mid to late Q1 2011. The resource estimate is expected to be somewhat improved over the 2007 estimate with the greatest improvement coming from reduced costs. Since 2007 however, the outstanding shares have increased significantly limiting upside buyout potential compared to 2007. Teck has a 120 day option period to exercise a conditional 75% buy back provision and expectation is Teck will exercise that provison as they are on the hunt for a copper stream and CUU should fit that need well. The feasibility study will not include any resources contained in the extension zone
where CUU drilled last summer and as such any buyout possibilities for CUU will remain with the value associated with the improved feasibility study. Consequently we are looking at a potential buyout price between $1.50 and $2.00 a share hopefully.

Other considerations:
CUU management would like to see an outright buyout of the company. They don't wish to get involved with mining the Shaft Creek deposit, that is Teck's forte. In a best case scenario Teck would simply buy CUU out. If they don't buy CUU out there is the possibility that Teck would mothball the project until they need it and currently they have their hands full with existing
projects. It would not be in the interests of shareholders to have Teck mothball the project. Copper Fox management is free to shop their 25% portion to any buyer who is willing to wait until Teck decided to finance and commission a mine at Shaft Creek. With Copper Fox trading near the .75c range there appears to be a double in store or better for shareholders willing to wait for another year for the cards to unfold and know which direction CUU is heading in. It all rests with Teck at this point in time. Teck for their part has been doing their due diligence vetting the numbers during the current feasibility study and we can expect an answer
likely before June 2011 whether or not Teck will buy back in or to what extent.

Disclaimer:

Opinions may vary but having been a shareholder for several years and watched their progress the foregoing is my opinion based on information and from conversations I have had with the company.

Share
New Message
Please login to post a reply