TSX-V Symbol: PCY
VANCOUVER
,
Jan. 4
/CNW/ -
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.
"STUART ROGERS"
Stuart Rogers
Director
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.
For further information: about Prophecy, please contact us toll-free at 1-800-459-5583 or visit our web site at www.prophecyresource.com
Share this article