VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/20/13 -- Prophecy Platinum Corp. ("Prophecy Platinum", or the "Company") (TSX VENTURE: NKL)(OTCQX: PNIKF) is pleased to announce that it has completed a $5.9 million equity financing (the "Private Placement") at a 12% premium to the 10 day VWAP and to today's closing price.
The Private Placement involved the issuance of 8,386,264 units of the Company ("Units"), at a price of $0.70 per Unit, with each Unit comprised of one "flow-through" common share (the "FT Shares") and one common share purchase warrant (the "Warrants"). Each Warrant is exercisable for one common share for a period of 24 months following the closing of the Private Placement at a price of $0.90. The Company paid finders' fees of $197,200 in connection with the Private Placement.
The gross proceeds of the Private Placement will be applied towards the continuing exploration and development of Prophecy Platinum's 100%-owned Wellgreen PGM-Ni-Cu property located in the Yukon Territory, as well as for studies at the Company's Shakespeare PGM-Ni-Cu property located in the Sudbury mining district in Ontario, and for exploration on the balance of its Canadian projects.
Prophecy Platinum's President and CEO, Greg Johnson, said, "We are very pleased with the strong support demonstrated by our investors in this $5.9 million equity financing. We believe the success of this offering reflects the recognition of the potential value of the Company's PGM projects and the confidence investors have in the commitment of the Company's experienced management team to create significant shareholder value. These funds will allow us to complete the next phase of exploration and development activities at our Wellgreen project this season to support an updated economic assessment in the first half of next year. The field programs and metallurgical test work have been initiated and we will be providing a detailed update on these programs in the near future."
In connection with the Private Placement, in order to assist Prophecy Platinum's management to build direct equity ownership in the Company and further align the interests of shareholders and management, the Company has advanced short-term loans (the "Loans") in the aggregate amount of $892,500 to members of the Company's senior management team to allow them to participate at in the Private Placement. The full amount of each Loan was used by each recipient to subscribe for Units under the Private Placement on the same premium to market terms as other investors. The Loans bear interest at a rate prescribed by the Canada Revenue Agency, and are repayable in full (together with any accrued interest) on March 31, 2014.
The securities issued pursuant to the Private Placement are subject to hold periods expiring on October 21, 2013, in accordance with applicable securities laws and the rules and policies of the TSX Venture Exchange.
About Prophecy Platinum
Prophecy Platinum Corp. is a growth-focused PGM exploration company with projects in the Yukon Territory, Ontario and Manitoba, Canada. The Company's 100% owned Wellgreen PGM- Ni-Cu project, located in the Yukon, is one of the world's largest undeveloped PGM deposits and one of few significant PGM deposits outside of southern Africa or Russia. The Company's Shakespeare PGM-Ni-Cu project is a fully-permitted, production-ready mine located in the Sudbury mining district of Ontario, and its Lynn Lake project is a former operating mine located in Manitoba, Canada. The Company's experienced senior management team has a track record of successful, large-scale project discovery, development, operations and financing combined with an entrepreneurial and collaborative approach to working with First Nations and communities.
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