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Prophecy completes spin out of nickel assets

Steel News - Published on Tue, 21 Jun 2011

Prophecy Resource Corporation announced the completion of the sale of the Wellgreen and Lynn Lake nickel properties to Pacific Coast Nickel Corporation by Prophecy by way of a plan of arrangement under the Business Corporations Act.

Pursuant to the Transaction, PCNC issued 450,000,000 of its common shares to Prophecy. Prophecy retained 225,000,000 of these shares and will distribute 180,823,575 PCNC common shares to Prophecy shareholders as of today\'s date and reserve 44,176,425 common shares for distribution to holders of Prophecy options and warrants upon the exercise of such options and warrants.

Immediately following the completion of the Transaction, PCNC will consolidate its share capital on a ten old for one new basis and will change its name to Prophecy Platinum Corporation PCNC will retain its existing symbol NKL.V. Prophecy will change its name to Prophecy Coal Corporation and will retain its existing symbol PCY V.

Post Consolidation shares of PCNC and common shares of Prophecy are expected to commence trading under their new names in the next 2 to 5 days.

As a result of the Transaction and Consolidation, each Prophecy shareholder will receive 0.094758 of a post Consolidation PCNC shares for each Prophecy share held as at June 13, 2011. Each option holder and warrant holder of Prophecy will upon the exercise of their Prophecy options and warrants, as the case may be, receive 0.094758 of a post Consolidation PCNC share, in addition to one common share of Prophecy for each whole option or warrant of Prophecy held. If the Prophecy options and warrants expire unexercised such holder will not receive any PCNC Shares.

Following completion of the Transaction, PCNC will have 50,603,484 post Consolidation shares outstanding and 52,894,784 post Consolidation shares issued on a fully diluted basis. Also at this time, Prophecy will own 22,500,000 common shares of PCNC or 44.46% on an outstanding and 42.54% on a fully diluted basis.
Posted By : admin on Tue, 21 Jun 2011
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