Victory Nickel and Prophecy Complete Reciprocal Private Placements
NEWS RELEASE
Victory Nickel and Prophecy Complete Reciprocal Private Placements
Vancouver, British Columbia, May 28, 2010: Prophecy Resource Corp. (“Prophecy”) (TSX- V:PCY, Frankfurt: 1P2) and Victory Nickel Inc. (“Victory Nickel”) (TSX:NI, www.victorynickel.ca) have completed reciprocal private placements announced on May 13, 2010.
Prophecy subscribed for 36,615,385 common shares in Victory Nickel at a price of $0.104 per common share for gross proceeds of $3,808,000. In turn, Victory Nickel subscribed for 7,000,000 Prophecy common shares at a price of $0.544 per common share for gross proceeds of $3,808,000. The transaction resulted in Victory Nickel owning a 9.9% interest in Prophecy and Prophecy acquiring a 9.8% interest in Victory Nickel.
The Prophecy common shares issued to Victory are subject to a four month hold period expiring on September 29, 2010.
About Prophecy
Prophecy controls over NI-43-101 compliant Measured and Indicated mineral resources of 232 million pounds of nickel, 1 billion tonnes of coal and 116 million pounds of copper as well as inferred resources of 82 million pounds of nickel, 500 million tonnes of coal, and 593 million pounds of copper. The Company's Ulaan Ovoo Coal Project, Mongolia is expected to be in production this year. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Prophecy will hold properties with significant exposure to vanadium and titanium. All Prophecy's coal assets are located in Mongolia with its remaining assets located in Canada. The Company is currently reviewing additional opportunities for growth.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources. Victory Nickel is focused on becoming a midtier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Québec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns approximately 9.9% of the shares of Prophecy Resource Corp. (TSX-V: PCY) and approximately 5% of the shares of Wallbridge Mining Company Limited (TSX: WM), the third largest landholder in the Sudbury Basin, which in turn owns approximately 12.9% of Duluth Metals Limited.
For more information about Prophecy, please contact John Lee at +1.800.851.1528 or visit our web site at www.prophecyresource.com.
ON BEHALF OF THE BOARD OF DIRECTORS of
Prophecy Resource Corp.
"JOHN LEE"
John Lee Chairman
For further information:
John Lee Telephone 1.800.851.1528 Email: [email protected] www.prophecyresource.com
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