TSX-V Symbol: PCY
VANCOUVER, Dec. 9 /CNW/ - Prophecy Resource Corp. (TSX-V: PCY.V) (Frankfurt: 3P1) has agreed to a non-brokered private placement of 6,000,000 units at a price of $0.30 per unit for gross proceeds of $1,800,000. Each unit will be comprised of one common share and one half of one share purchase warrant, with each warrant entitling the holder to purchase an additional share at an exercise price of $0.40 per share for a period of two years from the date of issue.
In the event that the closing price of Prophecy's common shares on the TSX Venture Exchange is at least $0.60 for twenty consecutive trading days at any time following four months from the date of closing, the Company may reduce the remaining exercise period of the Warrants to not less than 30 days from the date of providing notice of such reduced exercise period.
A finders fee will be payable on a portion of this placement, which is subject to acceptance for filing by the TSX Venture Exchange.
About Prophecy Resource Corp.
Prophecy has entered into an agreement to acquire the Lynn Lake Nickel Project in Manitoba, which contains a National Instrument 43-101 compliant Measured and Indicated resource of 17 million tonnes with an average grade of 0.62% Nickel and 0.31% Copper at a 0.4% nickel cut-off grade. The Lynn Lake Technical Report, dated December 5, 2007, was prepared by Wardrop Engineering Inc. for Independent Nickel Inc. and is available under Independent Nickel's filings at www.sedar.com. This agreement is subject to acceptance for filing by the TSX Venture Exchange.
Prophecy has also earned a 60% interest in the Okeover Copper-Molybdenum property in B.C. where, in 2006, Dr. N.C. Carter, PhD, P.Eng, completed a technical report on the Okeover Property pursuant to NI 43-101 that estimated an inferred mineral resource of 86.8 million tonnes grading 0.31% copper and 0.014% MoS2 at a 0.20% copper cut-off grade. This report is available at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Prophecy Resource Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE PROPHECY RESOURCE CORP.
For further information: For further information: about Prophecy, please contact us toll-free at 1-800-459-5583 or visit our web site at www.prophecyresource.com