Prophecy Platinum to raise $7.25 mln in private financing

Prophecy Platinum Corp. (CVE:NKL) said Tuesday it has closed a $7.25 million non-brokered private financing.

The company plans to sell 5.06 million units priced at $1.20 each to generate about $6.08 million. It added each unit consists of one share and one-half purchase warrant valid for two years.

The warrant gives the holder a right to buy one extra share priced at $1.50 each in the first year, and $2.00 per share in the second year.

It also plans to sell 807,655 flow-through shares priced at $1.45 each generating proceeds of roughly $1.17 million.
Finder’s fees may be paid, the company said.

Proceeds will go toward the company’s flagship Wellgreen project in the Yukon, and its other properties, in addition to general working capital.

Separately, the company reported roughly two weeks ago that it officially purchased nickel and copper producer Ursa Major Minerals.

The junior natural resource miner said the deal was completed Monday, July 16.

The merger, which was first announced on March 1, will create a mid-tier resource company with a pipeline of platinum and nickel projects including the Shakespeare nickel-copper mine near Sudbury, and the Wellgreen project, in Yukon Territory and Manitoba’s Lynn Lake.

Shakespeare has a probable reserve of 11.82 million tonnes grading 0.33% nickel, 0.35% copper and 0.02% cobalt with 0.33 grams per tonne (g/t) platinum. This includes 0.36 g/t palladium and 0.18 g/t gold.

The Wellgreen project in the Yukon has over 10 million ounces of platinum-palladium-gold inferred resource. Active drilling is ongoing with a pending preliminary economic assessment study.

Manitoba's Lynn Lake nickel-copper project has over 262 million pounds of nickel and 138 million pounds of copper in the measured and indicated categories.
Prophecy is a Canadian nickel and platinum group metals exploration miner with projects in Canada, Argentina and Uruguay. In Canada, it holds the Lynn Lake project in Manitoba, as well as Wellgreen.