TSX-V Symbol: PCY
VANCOUVER, Jan. 4 /PRNewswire-FirstCall/ -
Lynn Lake Nickel-Copper Project
Prophecy Resource Corp. (TSX.V: PCY) is pleased to announce that, further to its news release dated October 21, 2009, it has received TSX Venture Exchange approval to the terms of an option agreement with Victory Nickel Inc. (TSX.T: NI) whereby Prophecy has the right to acquire a 100% interest in the Lynn Lake Nickel-Copper Project located in Manitoba, Canada. Under the terms of the option agreement, Prophecy has issued 2,419,548 shares in its capital and has paid cash consideration to date of $300,000 to Victory.
The Lynn Lake Project is located in the historic mining town of Lynn Lake in northern Manitoba, about 320 kilometres by road access northwest of the Thompson mining camp. The property is the former Sherritt Gordon Mines Limited mine site known as the Lynn Lake A mine and Farley mine, comprised of 30 mineral leases covering an area of 590 hectares. The property was operated by Sherritt Gordon from 1953 to 1976 for a total of 24 years, with reported production of 22.2 million tons at an average grade of 1.023% nickel and 0.535% copper.
According to a Technical Report on Lynn Lake prepared by Wardrop Engineering Inc. for Independent Nickel Inc. in 2007, the property 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, is available under Independent Nickel's filings at www.sedar.com.
Private Placement of $2,264,699
Prophecy is also pleased to announce it has closed private placements announced on October 21, 2009, December 9, 2009, December 14, 2009 and December 23, 2009 totaling 12,860,782 shares and 6,430,391 warrants to raise a total of $2,264,699. Of this total, $1,095,249 is by way of flow-through subscriptions and $1,169,450 by way of non flow-through subscriptions. Proceeds from the private placements will be applied to acquisition costs and exploration of the Lynn Lake Project and for working capital.
All of the shares, warrants and any shares issued upon exercise of the warrants comprising the units issued pursuant to the private placements and shares issued in consideration of the Lynn Lake Nickel-Copper Project are subject to a hold period and may not be traded in Canada until May 1, 2010, except as permitted by applicable Canadian securities laws and the TSX Venture Exchange.
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.