March 2,
2012: Prophecy Platinum Corp. ("Prophecy" or the "Company")
(TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P)
and Ursa Major Minerals Incorporated
("Ursa") (TSX: UMJ)
(the "Companies") are pleased to
announce that they have entered into a binding letter of agreement (the
"Agreement") for a business combination through a proposed all share
transaction (the "Transaction"). Prophecy and Ursa act at arm's
length and the Transaction has been negotiated at arm's length.



Financial Terms of the Transaction



Pursuant to the Agreement, Prophecy will issue 1 common share in exchange for
every 25 outstanding common shares of Ursa. Ursa options and warrants will be
exchanged for options and warrants of Prophecy as discussed under the "Further
Detail" Section.



The offer represents approximately $0.15 per each common share of Ursa based on
Prophecy's share price of $3.70 as at March 1, 2012, representing a premium of
130% to Ursa's closing price as at March 1, 2012 of $0.065.



Prophecy is to subscribe for $1 million common shares of Ursa by way of private
placement financing at $0.06 per share, subject to regulatory approval. Upon
placement completion, John Lee and Greg Hall, current Prophecy directors, will
be appointed to Ursa's board.



Highlights of the Transaction



The new Prophecy will become a mid-tier resource company with a robust and
diversified pipeline of platinum nickel projects, including



  • Fully permitted open-pit
    Shakespeare* PGM-Ni-Cu mine close to Sudbury infrastructure with near term
    production capabilities.

  • Flagship Wellgreen** (Yukon)
    PGM-Ni-Cu project with over 10 million oz of Pt-Pd-Au inferred resource.
    Active drilling is ongoing with pending preliminary economic assessment
    study.

  • Manitoba's Lynn Lake***
    Ni-Cu project with over 262 million lbs Ni, and 138 million lbs Cu
    Measured and Indicated.



The
transaction provides Ursa shareholders with liquidity, sustaining capital and
opportunity to participate in the significant exploration and development upside
of Wellgreen and Lynn Lake.



The
principal focus of Prophecy in 2012 and beyond is Wellgreen. Upon completion of
the Transaction, Prophecy plans to publish a new Shakespeare feasibility and
thoroughly examine project economics and metal prices before making a
production decision. At the appropriate time, joint venture partners may be
sought to develop Wellgreen, Lynn Lake, and Shakespeare.



John Lee, Chairman of Prophecy, comments, "We believe with this production
ready mine, Prophecy would raise its profile, broaden investment appeal, and
gain further trading liquidity. Ursa's board recognize the synergy and that
this deal is potentially accretive to both Ursa and Prophecy shareholders"



Richard Sutcliffe, President and CEO of Ursa, comments "We are very
pleased to have reached this agreement with Prophecy which provides an
excellent opportunity to advance the Shakespeare Mine. Our shareholders will to
participate in a combined company with an outstanding portfolio of assets and
substantially improved market capitalization and liquidity."



Further Detail Regarding the Transaction



It is contemplated that the Transaction will be completed by way of a Plan of
Arrangement, structured in such a way that will result in the financial terms
of the Transaction being met. The parties have agreed to complete the
Transaction by June 15, 2012.



Richard Sutcliffe, President and CEO of Ursa, will be appointed to the board of
directors of Prophecy upon completion of the Transaction.



As a result of the Transaction, all existing warrants, options and other rights
to acquire common shares of Ursa will be exchanged for options and warrants of
Prophecy such that each former Ursa option and warrant will be exchanged for a
Prophecy option or warrant, respectively, exercisable for that number of
Prophecy shares that is equal to the number of Ursa Shares that would otherwise
have been issuable thereunder divided by 25 with the exercise price of such
Prophecy option or warrant being adjusted to equal the exercise price of the applicable
Ursa option or warrant multiplied by 25.



Based on 79.7 million Ursa common shares outstanding, Prophecy is expected to
issue 3.19 million shares as part of the Transaction.



The final structure and ratios of the Transaction will be subject to the receipt
of final tax, corporate and securities law advice.



Completion of the Transaction is conditional upon:



  • Completion of environmental
    and title due diligence of Ursa by Prophecy;

  • Ursa securing support
    agreements in favour of the Transaction from the holders of a minimum of
    20% of its outstanding shares;

  • Ursa and Prophecy, if
    required, shareholders having approved the Transaction;

  • Prophecy shareholders or
    Ursa shareholders not having exercised rights to dissent over more than
    10% of the shares of Prophecy or 10% of the shares of Ursa, respectively,

  • receipt of all necessary
    regulatory approvals, including the approval of the TSX Venture Exchange
    (the "Exchange") and the TSX ("TSX");

  • receipt of approval of the
    British Columbia Supreme Court, if applicable;

  • execution of a definitive
    Transaction agreement;

  • Ursa terminating certain
    third party agreements; and

  • certain other customary
    conditions.



The
Agreement includes non-solicitation clauses. A break fee of $1,500,000 is
payable to Prophecy should Ursa accept a superior un-solicited offer.



Ursa, and Prophecy, if required, will call a special meeting of shareholders to
be held in late May 2012 to approve the Transaction. Ursa expects to mail an
information circular providing full details of the Transaction in late April
2012.



Prophecy's Key Assets



**The Wellgreen PGM Ni-Cu Project



The Wellgreen PGM Ni-Cu property covers an area of approximately 22 square
miles in the Yukon Territory, Canada. The property has easy road access,
located approximately 35 kilometres northwest of Burwash Landing, Yukon, 15 km
from the paved 2 lane Alaska Highway and 402 km from Alaska's Haines deep sea
port. Wellgreen is part of Kluane Ultramafic Nickel belt, which is second
largest behind the Thompson Belt in Canada and remains vastly unexplored.
Management is focused on advancing the project, with most recent efforts
centering around an underground drilling program initiated in February 2012
that is intended to further define the Wellgreen resource. A more comprehensive
surface drilling operation will commence later in the spring. In addition, a
scoping study (PEA) by Wardrop Engineering is expected to be completed by Q1
2012. Prophecy intends to utilize the results of the 2012 drill program to
update the current resource estimate. Wellgreen contains an indicated mineral
resource of 14 million tonnes at 0.69% nickel, 0.62% copper and 2.25 g/t PGM+Au
and 289 million tonnes of inferred resources at 0.28% nickel, 0.35% copper and
1.18 g/t PGM+Au, all estimated at 0.4% NiEq cut-off (Wardrop Technical
Report July 2011)
.








































































 



Tonnes
(t)



PGM+Au
(g/t)



Ni (%)



Cu (%)



Indicated



14
Million



2.25



0.69



0.62



Inferred



289
Million



1.18



0.38



0.35



Based on resource estimated at
0.4% NiEq cut-off



Metal



Indicated



Inferred



Nickel
(Ni)



0.22
Billion lbs.



2.42
Billion lbs.



Copper
(Cu)



0.20
Billion lbs.



2.23
Billion lbs.



Cobalt
(Co)



15.77
Million lbs.



191.30
Million lbs.



Platinum
(Pt)



0.46
Million oz.



4.93
Million oz.



Palladium
(Pd)



0.34
Million oz.



3.91
Million oz.



Gold
(Au)



0.24
Million oz.



2.14
Million oz.



PGM+Gold



1.04
Million oz.



10.97
Million oz.





Based on resource estimated at 0.4% NiEq cut-off and 100% metals recoveries.






***The Lynn Lake Nickel Project 




In October 2009, Prophecy entered into an agreement to acquire a 100% interest
in The Lynn Lake Nickel Project from Victory Nickel Inc. (TSX: NI).  The
deposit is in Manitoba, Canada, which is mining friendly and also adjacent to a
power line, rail line, and airport. Lynn Lake contains Measured and indicated
mineral resources of 22.9 million tons of grading, of 0.57% nickel and 0.30%
copper and 8.1 million tonnes of Inferred Resource at 0.51% Nickel & 0.28%
Copper (Wardrop Technical Report April 2011). Prophecy recently
completed bulk tonnage metallurgical testing at Lynn Lake in preparation for a
feasibility study.





















































 



Tonnes
(t)



Ni (%)



Cu (%)



Measured



1.02
Million



0.76



0.36



Indicated



21.88
Million



0.56



0.30



Inferred



8.07
Million



0.51



0.28



Based on resource estimated at
0.4% NiEq cut-off



Metal



Measured
(lbs.)



Indicated
(lbs.)



Inferred
(lbs.)



Nickel
(Ni)



16
Million



247
Million



82
Million



Copper
(Cu)



7
Million



130
Million



46
Million





Based on resource estimated at 0.4% NiEq cut-off and 100% metals recoveries.




The
information concerning the current mineral properties controlled by Prophecy,
as described in this news release, has been reviewed and approved by Danniel
Oosterman, P.Geo., a Prophecy Geologist and a Qualified Person under National
Instrument 43-101.



Ursa's Key Assets



*The Shakespeare Mine



The Shakespeare PGM-Ni-Cu Mine is located 70 km west of Sudbury, Ontario. In
2010 and 2011, through contract mining, the Company trucked and delivered a
total of over 360,000 tonnes of ore to the Sudbury's Strathcona Mill for
processing. Total revenue generated was over $20,000,000. Ursa believes there
is potential to increase throughput and realize cost savings by constructing a
mill on site.



The feasibility study by Micon International Limited in January 2006 and
subsequently updated in 2008, defined a Probable Reserve of 11,828,000 tonnes
grading 0.33% nickel, 0.35% copper, 0.02% cobalt, 0.33 g/t platinum, 0.36 g/t
palladium and 0.18 g/t gold. The mineral reserve is to a maximum depth of 250
metres below surface.



















 



Tonnes
(t)



PGM+Au
(g/t)



Ni (%)



Cu (%)



Probable



11.8
Million



0.87



0.33



0.35






With a 4,500 tpd Mill on site, the study projects an after tax internal rate of
return ("IRR") of 22.6% (29.1% pre-tax IRR) on an initial total
capital cost of C$148,193,000.The undiscounted total annual cash flow
("NPV") is C$169,581,000 and the NPV discounted at 8% is
C$73,297,000. The project has a 7.2 year mine production life. The economic
analysis makes the assumption of the following long term metal prices over the
life of the project, expressed in 2007 dollars, nickel US$9.37/lb, copper
US$2.11/lb, cobalt US$27.57/lb, platinum US$995.52/ounce, palladium
US$342.49/ounce, gold US$563.27/ounce.



Mr. T. Hennessey, P.Geo, of Micon and Mr. E. Puritch P.Eng. of P&E Mining
Consultants Inc. were the qualified persons for the Shakespeare reserve
estimates and Mr. Ian Ward, P.Eng. of Micon was the qualified person for the
Shakespeare feasibility study.



About Prophecy Platinum



Prophecy Platinum Corp. is a Canadian based Nickel PGM exploration company with
projects in Canada, Argentina and Uruguay. Prophecy Platinum's flagship
Wellgreen PGM-Cu-Ni project is in Yukon Territory, Canada and the Lynn Lake
project is located in Manitoba, Canada. Further information can be found at www.prophecyplat.com.



About URSA Major Minerals



Ursa is a Canadian mining company with a nickel mine and two nickel sulphide
projects containing significant NI 43-101 compliant nickel and copper reserves
and resources. Ursa is focused on expanding operations at the Shakespeare
Nickel Mine and growing its nickel, copper and platinum group metal (PGM)
deposits through exploration and development, primarily in Ontario, Canada.



 



ON BEHALF
OF THE BOARD OF DIRECTORS of



Prophecy
Platinum Corp. "John Lee"

John Lee

Chairman



For
further information:

David Brook

Manager, Investor Relations

1-800-358-5865

dbrook@prophecyplat.com


www.prophecyplat.com



ON BEHALF
OF THE BOARD OF DIRECTORS of



Ursa
Major Minerals Incorporated"RICHARD SUTCLIFFE"

Richard Sutcliffe

President and CEO





For further information:

Alison Tullis

Manager, Investor Relations

Telephone 416.864.0615

Email: atullis@ursamajorminerals.com

www.ursamajorminerals.com





Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
 



 Forward
Looking Statements: This news release includes certain statements that may be
deemed "forward-looking statements". All statements in this release,
other than statements of historical facts, including, without limitation,
statements potential mineralization, the estimation of mineral resources, the
realization of mineral resource estimates, interpretation of prior exploration
and potential exploration results, the timing and success of exploration
activities generally, the timing and results of future resource estimates,
permitting time lines, metal prices and currency exchange rates, availability
of capital, government regulation of exploration operations, environmental
risks, reclamation, title, and future plans and objectives of the company are
forward-looking statements that involve various risks and uncertainties. .
Although Prophecy believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Forward-looking
statements are based on a number of material factors and
assumptions. Factors that could cause actual results to differ materially
from those in forward-looking statements include failure to obtain necessary
approvals in respect of the Transaction, unsuccessful exploration results,
changes in project parameters as plans continue to be refined, results of
future resource estimates, future metal prices, availability of capital and
financing on acceptable terms, general economic, market or business conditions,
risks associated with operating in foreign jurisdictions, uninsured risks,
regulatory changes, defects in title, availability of personnel, materials and
equipment on a timely basis, accidents or equipment breakdowns, delays in
receiving government approvals, unanticipated environmental impacts on
operations and costs to remedy same, and other exploration or other risks
detailed herein and from time to time in the filings made by the companies with
securities regulators. Readers are cautioned that mineral resources that are
not mineral reserves do not have demonstrated economic viability. Mineral
exploration and development of mines is an inherently risky business. Accordingly
the actual events may differ materially from those projected in the
forward-looking statements. For more information on Prophecy and the risks and
challenges of their businesses, investors should review their annual filings
that are available at
www.sedar.com.



"Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."




This press release does not constitute an offer to sell or a solicitation to
buy any of the securities in the United States.  The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended ("the U.S. Securities Act") or any state securities law
and may not be offered or sold in the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.


Nickel Creek Platinum (QB) (USOTC:NCPCF)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Nickel Creek Platinum (QB) Charts.
Nickel Creek Platinum (QB) (USOTC:NCPCF)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Nickel Creek Platinum (QB) Charts.