VANCOUVER, March 17 /CNW/ - Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 3P1) has agreed to a non-brokered private placement of up to 6,000,000 units at a price of $0.55 per unit for gross proceeds of $3,300,000. 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 $0.80 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 $1.10 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.
Finders fees will be payable to Bayfront Capital Partners Ltd. of Toronto on a portion of this placement, which is subject to acceptance for filing by the TSX Venture Exchange.
About Prophecy Resource Corp.
Prophecy is a Canadian company focused on the acquisition and development of advanced mineral assets. The company holdings include the Lynn Lake nickel-copper project in Manitoba, the Titan vanadium project in Ontario, and the Okeover copper-molybdenum project in British Columbia. All together, Prophecy controls 540 million lbs of copper, 345 million lbs of nickel, and 207 million lbs of vanadium. Technical reports on all these properties are available at www.sedar.com
On March 4, 2010, Prophecy signed a definitive agreement to combine with Red Hill Energy (TSX-V: RH), which controls over 1.5 billion tons of thermal coal resource in Mongolia.
ON BEHALF OF THE BOARD OF DIRECTORS of
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