Prophecy Announces $2,030,000 Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/21/10 -- Prophecy Resource Corp. ('Prophecy' or the 'Company') (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) reports that the Company has arranged a non-brokered private placement of 4,060,000 units (each a 'Unit') at a price of $0.50 per Unit to raise aggregate proceeds of $2,030,000. Each Unit is comprised of one common share and one half of one share purchase warrant. Each whole share purchase warrant (a 'Warrant') entitles the holder to acquire one additional common share for a period of two years at a price of $0.60.
A finder's fee of 5% of the proceeds raised payable in cash will be paid to Eurasia Capital and Frontier Securities.
Proceeds of the placement will be applied to general working capital.
Prophecy also advises that it has granted incentive stock options to certain officers and consultants entitling them to purchase up to 1,000,000 common shares of the capital stock of Prophecy at a price of $0.54 per share until September 21, 2015. The above is subject to regulatory approval.
About Prophecy
Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). In Canada Prophecy owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX-V: NTH) on June 15, 2010. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Resource Corp.
John Lee, Chairman
This news release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ('the U.S. Securities Act') or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
'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.'
Contacts:
Prophecy Resource Corp.
Paul McKenzie
+1.604.642.2625 ext. 107
Prophecy Resource Corp.
John Lee
+1.604.642.2625 ext. 107 or +1.800.851.1528
john@prophecyresource.com
www.prophecyresource.com