Mr. John Lee reports
PROPHECY CLOSES $3,900,000 PRIVATE PLACEMENT WITH ERIC SPROTT, WHO NOW OWNS 9%
Prophecy Development Corp. has closed the private placement previously announced on Oct. 7, 2019. The placement raised gross cash proceeds of $3.9-million for Prophecy through the issuance of 9.75 million common shares of Prophecy at a price of 40 cents per share.
Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired five million shares under the placement for a total consideration of $2-million. Following the completion of the private placement, Mr. Sprott's holdings represent 9 per cent of the issued and outstanding common shares of the company, Mr. Sprott beneficially owned 5.9 million common shares in the company prior to this investment. Mr. Sprott acquired the shares for investment purposes and with a long-term view of the investment.
Company management and directors purchased 400,000 shares of the placement for $160,000.
The company issued 654,500 shares as finders' fees to Mackie Research Capital Corp.
All shares are subject to a four-month-and-one-day hold period.
The company has 121,299,508 shares outstanding, after the closing of the placement.
The placement proceeds are expected to be used for the company's mineral project development and for general working capital purposes.
About Prophecy Development Corp.
Prophecy is developing Pulacayo silver project in Bolivia and Gibellini vanadium project in Nevada.
We seek Safe Harbor.
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