Prophecy shareholders approve sale of 2 Canadian nickel assets, name change to Prophecy Coal
Prophecy Resource Corp. (CVE:PCY)(OTCQX: PRPCF) and Pacific Coast Nickel Corp. (CVE:NKL) said Wednesday that both companies' shareholders have approved Pacific's acquisition of the Lynn Lake and Wellgreen nickel properties from Prophecy, a deal that will allow Prophecy to focus on its coal assets in Mongolia.
The Lynn Lake project is loacted in Manitoba, while the Wellgreen property is situated in the Yukon Territories, both in Canada.
Of the shareholders, more than 98% from Prophecy approved the deal, which was announced in April, and 75% of Pacific stakeholders supported the arrangement. Under the terms of the acquisition, Pacific Coast agreed to acquire both Canadian assets by issuing 450 million shares to Prophecy.
In connection with the deal, shareholders of Prophecy also approved a name change to "Prophecy Coal Corp" so as to better reflect its strategic direction going forward, while Pacific investors approved a 10:1 share consolidation, both companies said.
The sale of the properties, as well as the name change and share consolidation, remain subject to regulatory approvals. The deal is expected to complete around June 9.
Prophecy controls over 1.4 billion tonnes of surface minable thermal coal resources in Mongolia. Prophecy's Ulaan Ovoo coal mine is operational, and its Chandgana mine mouth power plant is currently being permitted.
The company also owns equity stakes in Victory Nickel and Compliance Energy Corp.
Pacific Coast is a Canadian based nickel and platinum group metals exploration company, with projects in Canada, Argentina and Uruguay.
The Lynn Lake project is loacted in Manitoba, while the Wellgreen property is situated in the Yukon Territories, both in Canada.
Of the shareholders, more than 98% from Prophecy approved the deal, which was announced in April, and 75% of Pacific stakeholders supported the arrangement. Under the terms of the acquisition, Pacific Coast agreed to acquire both Canadian assets by issuing 450 million shares to Prophecy.
In connection with the deal, shareholders of Prophecy also approved a name change to "Prophecy Coal Corp" so as to better reflect its strategic direction going forward, while Pacific investors approved a 10:1 share consolidation, both companies said.
The sale of the properties, as well as the name change and share consolidation, remain subject to regulatory approvals. The deal is expected to complete around June 9.
Prophecy controls over 1.4 billion tonnes of surface minable thermal coal resources in Mongolia. Prophecy's Ulaan Ovoo coal mine is operational, and its Chandgana mine mouth power plant is currently being permitted.
The company also owns equity stakes in Victory Nickel and Compliance Energy Corp.
Pacific Coast is a Canadian based nickel and platinum group metals exploration company, with projects in Canada, Argentina and Uruguay.
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