Prophecy Closes $250,000 First Tranche of Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 13, 2015) - Prophecy Development Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(Frankfurt:1P2) announces that it has closed the first tranche of the $1,000,000 non-brokered private placement announced on November 12, 2015 (the "Placement").
The first tranche of the Placement raised gross cash proceeds of $250,000 through the issuance of 6,250,000 units of Prophecy. Each unit is comprised of one Common share and one Common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional Common share of the Company at an exercise price of $0.07 for a period of five years from the closing of the Placement.
The Warrants will be subject to the following acceleration conditions:
- in the event that the closing price of the Common shares trading on the Toronto Stock Exchange exceeds $0.15 per Common share; or
- the closing spot price of silver as quoted by KITCO Metals Inc. exceeds USD$25.00 per ounce,
in either instance, for a period of over 30 consecutive calendar days, at Prophecy's election, the exercise period may be reduced in which case, Warrant holders will only be entitled to exercise their Warrants for a period of 30 days from the date the Company either disseminates a press release or sends written notice to the Warrant holders advising them of the reduced and accelerated exercise period after which, the Warrants will expire.
Company management and directors subscribed for 2,500,000 units of the Placement in the first tranche.
The Company paid in cash, finder's fees totaling $10,500 and issued 262,500 finder's Common share purchase warrants which are exercisable at a price of $0.07 for a period of two years from the closing of the Placement and are subject to the same acceleration conditions as the Warrants.
Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock Exchange that is engaged in developing mining and energy projects in Mongolia, Bolivia and Canada. Further information on Prophecy can be found at www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
JOHN LEE, Executive Chairman
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding Prophecy's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on Prophecy's forward-looking statements. Prophecy believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although Prophecy has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Prophecy undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.