Prophecy Platinum (CVE:NKL) reported Monday it will downsize the brokered financing announced last week in a move to minimize share dilution.
company also announced in Monday’s press release it appointed John Lee
as interim chief executive as it continues to find a permanent
Lee who is the third largest shareholder of Prophecy
said he was disappointed with the financing terms announced last week
for the $20 million offering.
Prophecy, spun-out by Prophecy Coal
(CVE:PCY) last year, kyboshed the $20 million brokered placement, and
has now arranged a non-brokered placement worth $11.25 million.
platinum group metals company switched to a non-brokered placement to
gain better control of the process and to lower financing costs.
new financing consists of five million units priced at $2.25 each. The
unit’s are made up of one share and one purchase warrant.
holders have a right to buy one extra share for $3 each for a period of
24-months. The company also said finder’s fees may be payable.
will go toward advancing its Wellgreen property to pre-feasibility, for
exploration, for mergers and acquisitions and for general corporate
The Wellgreen property, located in the Yukon Territory,
has 289.2 million tonnes at an average grade of 1.18 gram per tonne
(g/t). This includes platinum group metals plus gold, 0.38% nickel and
0.35% copper in the inferred category, according to a 43-101 resource
According to a preliminary economic assessment, the
project is slated to produce 1.95 billion pounds of nickel concentrate,
2.05 billion pounds of copper and 7.11 million ounces of platinum plus
palladium as well as gold over a 37-year mine life.
further noted the development of the Wellgreen deposit will produce a
pre-tax internal rate of return of 38 per cent and a net present value
of $3 billion, based on an eight per cent discount rate.
capital costs are pegged at $863 million, including 25 per cent
contingency. The deposit is to be processed using a conventional
concentrator to produce bulk nickel-copper-platinum group element
Shares rose 1.89 per cent climbing to $2.16 apiece in late morning trade on the TSX Venture Exchange.