Monday, 2 April 2012

Prophecy Platinum amends terms of Las Aguilas deal with Marifil Mines

Prophecy Platinum Corp. (CVE:NKL) said Monday it amended terms to a prior agreement with Marifil Mines (CVE:MFM) relating to the Las Aguilas platinum-nickle and copper-cobalt deposit in Argentina.
Prophecy informed Marifil that it would be unable to finish the $500,000 of work obligations due April 1, 2012 and asked for an extension for the next work obligation.
Marifil, which agreed to the extension, asked for an extra $50,000 payment. The payment due April 1, 2012 was increased to $125,000 as a result.
The pre-consolidation 250,000 share payment was unchanged, while the post-consolidation payment will be 25,000 shares of Prophecy common stock.
Marifil has received the $125,000 cash payment and the 25,000 share stock certificate.
Prophecy has the option to acquire a 70 percent stake in the property by way of a joint venture agreement with Marifil Mines.
"We now look forward to having Prophecy commence exploration and begin to increase the current resource," Marifil’s president John Hite said in a statement.
"One of the principal targets should be the East zone, which seems to be increasing in size and grade with depth."
The Las Aguilas project rests in the province of San Luis, Argentina, about 800 kilometres west of Buenos Aires. The project consists of 33 concessions totalling 57,597-hectares.
A resource estimate, which was done by Wardrop Engineering, shows 3.26 million tonnes grade at 0.67 percent nickel equivalent in the indicated category.
In the inferred category, the resource stands at 1.33 million tonnes with a grade of 0.59 percent nickel equivalent at a cut-off of 0.4 percent nickel equivalent.
Last month, Prophecy announced it entered into a binding letter of agreement to acquire Ursa Major Minerals (TSE:UMJ) in an all-share transaction.
Prophecy said it will issue one common share for every 25 outstanding common shares of Ursa. Ursa options and warrants will also be exchanged for options and warrants of Prophecy.
The offer represents about 15 cents per common share of Ursa based on Prophecy's share price of $3.70 as of March 1, reflecting a premium of 130 percent to Ursa's closing price as at March 1, 2012 of 6.5 cents.
The company is a Canadian nickel and platinum group metals explorer with projects in Canada, Argentina and Uruguay. In Canada, it holds the Lynn Lake project in Manitoba, as well as the Wellgreen asset.

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