Prophecy files equity offering prospectus

2010-12-02 11:47 ET - News Release

Mr. John Lee reports

PROPHECY ANNOUNCES FILING OF PRELIMINARY PROSPECTUS FOR PROPOSED EQUITY OFFERING

Prophecy Resource Corp. has filed a preliminary short form prospectus in the provinces of British Columbia, Alberta and Ontario, Canada for a new issue of common shares. The net proceeds of the offering are intended to be used by the Company to fund work on its existing properties in Mongolia, repayment of an outstanding credit facility, and for working capital and general purposes. The issue price of the shares and the number of shares to be issued will be determined in the context of the market.

Jacob Securities Ltd. and Renaissance Capital (Hong Kong) Ltd. will act as joint lead managers for the offering. The offering will be conducted in the Canadian provinces referred to above through Jacob Securities Ltd. Renaissance Capital (Hong Kong) Ltd. and affiliates will act as special selling agent for the purpose of procuring subscribers in certain jurisdictions outside of Canada.

The offering is subject to all customary conditions and regulatory approvals, including that of the TSX Venture Exchange.

We seek Safe Harbor.