Prophecy to Consolidate 100% of Titan Vanadium Project in Ontario to Target Vanadium Redox Battery Market
Prophecy to Consolidate 100% of Titan Vanadium Project in
Ontario to Target Vanadium Redox Battery Market
Vancouver, British Columbia, January 27, 2017 – Prophecy Development Corp.
(“Prophecy” or the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) is pleased
to announce that it has entered into a definitive agreement ( the “Agreement”) with
Randsburg International Gold Corp. (“ Randsburg”) to acquire Randsburg’s 20% title
interest in the patented claims that comprise the Titan vanadium-titanium-iron project
(“Titan”) in Ontario, Canada. Prophecy currently owns 80% of Titan prior to this pending
transaction.
The Titan project is located in eastern Ontario, approximately 120km northeast of Sudbury,
straddling the boundary between Angus and Flett Townships, and has access to water,
roads and electrical power. The Titan property consists of 262 contiguous hectares
comprising 17 patented claims.
The magnetite, ilmenite, titanium dioxide and vanadium mineralization at Titan occurs in a
southeast plunging body in gabbro to leucotroctolite in the northeastern corner of the Fall
Lake complex. The Titan deposit is located at the northern end of an aeromagnetic anomaly
that is approximately 1,200 metres long by 800 metres wide.
A total of 4,898 assay ed intervals are recorded from 38 core holes drilled by Randsburg on
the property. Drilling highlights reported by Randsburg included 142 meters of 0.27%
vanadium (0.48% vanadium pentoxide) from hole RA -5-21, and 174 meters of 0.26%
vanadium (0.46% vanadium pentoxide) from hole RA -5-10. The mineralization starts from
surface to an open vertical depth of 500 metres. The complete horizontal and vertical extent
of the deposit is still to be determined.
A Technical Report prepared by Mine Development Associates dated February 26, 2010
(available at www.sedar.com and www.Prophecydev.com) disclosed in compliance with
National Instrument 43 -101, Standards of Disclosure for Mineral Projects (“NI 43-101”) an
inferred resource for the Titan project:
Resource Category Tonnes (t) * Fe2O3 (%) ** V (%) ** TiO2 (%)**
Inferred 49.0 million 48.09 0.24 14.82
V converted to V2O5: 0.24 % V = 0.43% V2O5
The Company estimates vanadium content at 259 million lbs and titanium dioxide
content at 7,259 million kgs.
* Based on resource estimated at cutoff grade of 40% Fe2O3.
** 100% metals recovery is assumed.
The Technical Report is authored by Neil Prenn, P. Eng, who was an independent Qualified
Person under NI 43-101 at the time the report was prepared.
Information on the geology at Titan and assay results reported by Randsburg are available
at www.prophecydev.com.
Under the Agreement, Prophecy will acquire Randsburg’s remaining 20% interest in the
patented claims that comprise the Titan Project by issuing to Randsburg (or other nominee
party they designate) 20,000 Prophecy Common shares, which will be subject to a 4-month
hold period. Closing of this transaction will be subject to the approval of the Toronto Stock
Exchange.
John Lee, Executive Chairman of Prophecy states: " The use of w ind energy has increased
8-fold in the last 10 years. The grid energy storage market, while in its infancy, is set to
grow significantly to improve the availability factor of renewal e nergy sources. We believe
the vanadium redox battery (VRB) will lead the energy storage market due to its proven
technology, high scalability and environmental friendliness. Prophecy has begun
discussions with VRB manufacturers, with the view to eventually producing and selling
vanadium electrolyte from Titan to VRB suppliers.“
Two recent articles about VRBs written by Mr. Lee can be accessed at the links below:
http://www.kitco.com/commentaries/2016-12-19/Vanadium-Redox-Flow-Batteries-The-Next-
Big-Wave-After-Lithium-Batteries.html
http://www.kitco.com/commentaries/2017-01-24/Vanadium-Batteries-to-Power-27-billion-
Off-Grid-Energy-Market.html
Qualified Persons
The technical content of this news release was reviewed and approved by Christopher M.
Kravits, CPG, LPG, who is a Qualified Person within the meaning of NI 43-101. Mr. Kravits
is a consultant to the Company and serves as its Qualified Person and General Mining
Manager.
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 on Prophecy can be found at www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
“JOHN LEE”
Executive Chairman
For more information about Prophecy, please contact Investor Relations:
+1.888.513.6286
www.prophecydev.com
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 historica l 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 a nd 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 achievemen ts expressed or implied by such forward -
looking statements. These estimates and assumptions are inherently subject to significant
business, economic, competitive and other uncertainties and contingencies, many of which,
with respect to future events, are s ubject to change and could cause actual results to differ
materially from those expressed or implied in any forward -looking statements made by
Prophecy. In making forward -looking statements as may be included in this news release,
Prophecy has made several assumptions that it believes are appropriate, including, but not
limited to assumptions that: there being no significant disruptions affecting operations, such
as due to labour disruptions; currency exchange rates being approximately consistent with
current levels; certain price assumptions for coal, prices for and availability of fuel, parts and
equipment and other key supplies remain consistent with current levels; production
forecasts meeting expectations; the accuracy of Prophecy’s current mineral reso urce
estimates; labour and materials costs increasing on a basis consistent with Prophecy’s
current expectations; and that any additional required financing will be available on
reasonable terms. Prophecy cannot assure you that any of these assumptions wil l prove to
be correct.
Numerous factors could cause Prophecy’s actual results to differ materially from those
expressed or implied in the forward -looking statements, including the following risks and
uncertainties, which are discussed in greater detail u nder the heading “Risk Factors” in
Prophecy’s most recent Management Discussion and Analysis and Annual Information
Form as filed on SEDAR and posted on Prophecy’s website: Prophecy’s history of net
losses and lack of foreseeable cash flow; exploration, de velopment and production risks,
including risks related to the development of Prophecy’s mineral properties; Prophecy not
having a history of profitable mineral production; the uncertainty of mineral resource and
mineral reserve estimates; the capital and operating costs required to bring Prophecy’s
projects into production and the resulting economic returns from its projects; foreign
operations and political conditions, including the legal and political risks of operating in
Bolivia, which is a developing jurisdiction; amendments to local Bolivian laws which may
have an adverse impact on the Company’s operations; title to Prophecy’s mineral
properties; environmental risks; the competitive nature of the mining business; lack of
infrastructure; Prophecy’s rel iance on key personnel; uninsured risks; commodity price
fluctuations; reliance on contractors; Prophecy’s need for substantial additional funding and
the risk of not securing such funding on reasonable terms or at all; foreign exchange risks;
anti-corruption legislation; recent global financial conditions; the payment of dividends; and
conflicts of interest.
These factors should be considered carefully, and readers should not place undue reliance
on Prophecy’s forward -looking statements. Prophecy believe s 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 additio n, 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 no t 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.