Prophecy Received Approximately $2.34 Million From Equipment Sales
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 22, 2015) - Prophecy Development Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces further to its news release dated May 14, 2015 that Prophecy, through its wholly-owned subsidiary Red Hill Mongolia LLC, has closed the sale of substantially all of its mining and transportation equipment from the Company's Ulaan Ovoo mine and received a total of MNT 3,707,542,000 (equivalent to approximately $2,340,000) (the "Proceeds") based on today's exchange rate of $1 to MNT 1,584. The buyer chose not to purchase a few pieces of equipment which accounts for the slight difference of approximately $60,000 between the Proceeds and the original contract value announced.
The Company received consent for the sale of the equipment from its creditor, Linx Partners Ltd. ("Linx") which holds a general security interest over the Company's assets (including those held by subsidiaries). In consideration, John Lee, the beneficial owner of Linx, who is also a director and officer of the Company, received 12 million share purchase warrants of the Company exercisable at $0.05 per Common share for a period of 5 years from the date of issuance.
The Proceeds will be used to repay the Company's existing loan from the Trade and Development Bank of Mongolia and to advance the Company's Chandgana Mine Mouth Power Plant and Pulacayo Silver-Zinc-Lead Projects.
All currencies are expressed in Canadian dollars unless stated otherwise.
About Prophecy
Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock Exchange that is engaged in developing mining and energy projects in Mongolia, Bolivia and Canada. Further information about Prophecy can be found at: www.prophecydev.com.
ON BEHALF OF THE BOARD
"JOHN LEE"
Executive Chairman
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding Prophecy's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on the Prophecy's forward-looking statements. Prophecy believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although Prophecy has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Prophecy undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.
Contact
Prophecy Development Corp.
Investor Relations
+1.604.563.0699
+1.888.513.6286
ir@prophecydev.com
www.prophecydev.com