Copper Fox Metals (CVE:CUU) announced Monday it will add $2.0 million to its ongoing non-brokered private placement, bringing the total amount it intends to raise up to $5.0 million.
The offer will now consist of the issuance of over 3.33 million units at a purchase price of $1.50 per unit. Each unit consists of one common share of Copper Fox and one half of a common share purchase warrant.
One whole purchase warrant entitles the holder to buy one Copper Fox share for $1.75, for one year following the closing date of the placement offer.
The company said Ernesto Echavarria, a director for Copper Fox, has committed to participating in 100% of the $5.0 million offering, which will fund the company's 2011 exploration program, and the feasibility study of the Schaft Creek project in northwestern British Columbia.
"This financing commitment combined with direct advances already provided to the company by Mr. Echavarria demonstrate his strong commitment to Copper Fox and to the Schaft Creek project," said president and CEO, Elmer Stewart.
Recent drilling at Schaft Creek, which hosts copper, gold, molybdenum and silver, was conducted on the Paramount zone to test extensions of higher grade mineralization identified in 2010, the company said, along with a large chargeability anomaly found east of Paramount last year.
Two diamond drills are currently working at the site, with a third having arrived last weekend to accelerate the program.
Highlights so far included diamond drill hole (DDH) CF409-2011, which is located 147 metres east of a 2010 diamond hole, and intersected 0.43% copper, 0.27 grams per tonne (g/t) of gold, 0.04% molybdenum, and 1.70 g/t silver, or 0.81% copper equivalent, over an interval of 154.3 metres.
The company said mineralization on this new area east of Paramount remains open to the east, along strike and at depth.
Copper Fox also said that a Titan-24 survey, which was conducted over the Mike zone, and the recently acquired ES and GK zones north of the Shaft Creek deposit, has been completed, with results expected by the end of the month.
The survey covered 2.8 kilometres of strike length on the Mike and ES zones, and 0.8 kilometres over the GK zone.
Meanwhile, results for four more diamond drill holes, which intersected visible copper and molybdenum, are still pending.
Copper Fox holds a 100% working interest in a 24,000 hectare property, which includes the Schaft Creek deposit, subject to certain royalty agreements, a 30% carried interest held by Liard Copper and an earn back option held by Teck Resources to acquire up to 75% of the project.
Currently, Copper Fox is earning a 78% interest in Liard Copper from Teck.