Prophecy Acquires Louie Hill Project in Nevada for Third Vanadium Transaction in 2017

- July 13th, 2017

Prophecy Development (“Prophecy” or the “Company”)(TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) is pleased to announce that it has successfully acquired through lease, the Louie Hill vanadium project in Nevada, USA (the “Louie Hill Project”) from arm’s-length, private parties (the “Lessors”) with the intent to carry-out mining operations there. Transaction Summary Under the mineral lease agreement, Prophecy has leased the Louie Hill mining … Continued

Prophecy Development (“Prophecy” or the “Company”)(TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) is pleased to announce that it has successfully acquired through lease, the Louie Hill vanadium project in Nevada, USA (the “Louie Hill Project”) from arm’s-length, private parties (the “Lessors”) with the intent to carry-out mining operations there.
Transaction Summary

Under the mineral lease agreement, Prophecy has leased the Louie Hill mining claims which constitute the Louie Hill Project by paying to the Lessors, annual advance royalty payments which will be tied, based on an agreed formula (not to exceed $28,000 per year), to the average vanadium pentoxide price for the prior year.
Upon commencement of production, Prophecy will maintain its acquisition through lease of the Louie Hill mining claims by paying to the Lessors, a 2.5% net smelter return (“NSR”) of which, 1.5% of the NSR may be purchased at any time by Prophecy for $1,000,000, in such case, leaving the total NSR to be reduced to 1% over the remaining life of the mine (and referred to thereafter, as “production royalty payments”).
All advance royalty payments made, will be deducted as credits against future production royalty payments.
The lease will be for a term of 10 years, which can be extended for an additional 10 years at Prophecy’s option.
With the acquisition of the Louie Hill Project, together with the previously acquired Gibellini and Titan projects, Prophecy is well-positioned to be a leading North American vanadium exploration company.

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