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Monday, 27 August 2012
Prophecy Platinum to raise $3 mln in non-brokered financing
Prophecy Platinum Corp. (CVE:NKL)(OTCQX:PNIKF) said before the start of the weekend that it plans to raise $3 million through a non brokered private placement financing.
The offering will consist of 2.5 million units at a price of $1.20 each.
The entire placement was subscribed by an existing shareholder, Prophecy said.
Each unit is comprised of one common share and a half share purchase warrant.
One whole warrant entitles the holder to acquire an additional common share at a price of $2.00 each for a period of two years.
The company said the new funds will be used for Prophecy's flagship platinum group metals-nickel-copper Wellgreen project in the Yukon, and its other properties, as well as for general working capital.
The warrants under the financing are subject to 30-day accelerated conversion if the closing price of the company's shares on the TSX Venture Exchange is $2.80 or higher, for a period of 10 straight days.
Closing of the placement is anticipated around the end of the month.
The Canadian nickel-PGM exploration company has projects in Canada, Argentina and Uruguay.
Aside from Wellgreen, its holdings include the fully permitted Shakespeare project in Ontario, the Lynn Lake nickel copper project in Manitoba, the Las Aguilas nickel PGM deposit in Argentina, as well as five prospective claims in Uruguay.
Earlier this month, the miner unveiled further drill results from its underground infill program on its Wellgreen project.
The five holes reported all intercepted "significant" mineralized widths, the company said, ranging from 94.2 metres and up to 284.4 metres.
The grades were "materially higher" than the 0.22% nickel equivalent cut off adopted in the preliminary economic assessment resource model.
Highlights included hole WU12-539, which returned 18 metres of 1.75 grams per tonne (g/t)platinum+palladium+gold, 0.82% copper, and 0.48% nickel within 51.5 metres of 1.11 g/t platinum+palladium+gold, 0.50% copper, and 0.31% nickel.