PROPHECY RESOURCE CORP. ("PCY")
BULLETIN TYPE: Property-Asset or Share Disposition Agreement
BULLETIN DATE: June 9, 2011
TSX Venture Tier 1 Company
TSX Venture Exchange has accepted for filing an arrangement agreement (the "Agreement") dated March 30, 2011 between Prophecy Resource Corp. (the "Company") and Pacific Coast Nickel Corp. (TSXV:NKL) (the "Purchaser"), pursuant to which the Company has agreed to sell to the Purchaser the Lynn Lake and Wellgreen nickel properties, together with $2,000,000 cash.
Consideration paid by the Purchaser to the Company will be 450,000,000 common shares in the capital of the Purchaser, of which 225,000,000 will be retained by the Company, and 225,000,000 will be distributed on a pro-rata basis to holders of the common shares of the Company on a fully diluted basis as of closing (including holders of common shares consequent upon exercise of options and warrants).
The above noted transaction was approved by the Company's shareholders at the Company's annual and special meeting on May 31, 2011.
The closing of the transaction is subject to final Exchange approval of the Purchaser's Reverse Takeover transaction.
For further information in connection with the above noted transaction please read the Company's Joint Information Circular for the special meeting of shareholders dated April 28, 2011 available on SEDAR.
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