Prophecy Announces Accelerated Expiry of Warrants
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/04/11 -- Prophecy Resource Corp. ('Prophecy' or the 'Company') (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) provides notice of the accelerated expiry of approximately 3,355,585 share purchase warrants of the Company which were issued in various private placements (the 'Warrants'). 1,711,533 Warrants are exercisable to purchase one common share of the Company at a price of $0.50 per share until December 31, 2011. 915,750 Warrants are exercisable to purchase one common share of the Company at a price of $0.40 per share until December 31, 2011 and 728,302 Warrants are exercisable to purchase one common share of the Company at a price of $0.40 per share until January 25, 2012.
Pursuant to the terms of the Warrants, the expiry date of the Warrants may be accelerated at any time prior to the expiry date of the Warrants if the closing price of the Company's common shares on the TSX Venture Exchange exceeds $0.60, in the case of the $0.40 warrants and $0.70, in the case of the $0.50 warrants, for a period of 20 consecutive trading days. As a result, the expiry date of the Warrants is being accelerated to 5:00 pm (Vancouver time) on February 4, 2011 (the 'Early Expiry Time'). Any Warrants remaining unexercised after the expiration of the Early Expiry Time will be cancelled and will thereafter be of no force and effect.
How to Exercise Warrants
Warrant holders who wish to exercise their Warrants should instruct their investment advisor for an 'immediate exercise' and be prepared to provide payment (by certified cheque, bank draft or money order) to their advisor firm equal to the exercise price for each warrant exercised. Once the Company receives payment and required documentation the Warrants will be cancelled and the warrant holder will receive Prophecy common shares.
Investors should consult with their investment advisor to confirm the time required to complete this process and other costs associated with the exercise, if any.
Warrant holders who hold a physical certificate wishing to exercise warrants need to provide the Company with a certified cheque, bank draft or money order payable to Prophecy Resource Corp., an exercise form and warrant certificate. For assistance, contact the Company directly.
About Prophecy Resource
Prophecy 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). Prophecy's Ulaan Ovoo coal deposit in Mongolia is in production. In Canada, Prophecy owns Wellgreen PGM Project in Yukon, Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel. 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
'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.
Scott Parsons
1.604.642.2625 ext. 106
Prophecy Resource Corp.
Paul McKenzie
1.604.642.2625 ext. 107
Prophecy Resource Corp.
John Lee
1.800.851.1528
john@prophecyresource.com
www.prophecyresource.com