VANCOUVER, BC / ACCESSWIRE / August 25, 2017 / Prophecy Development Corp. ("Prophecy" or the "Company") (TSX: PCY, OTC PINK: PRPCF, FSE: 1P2N) As a result of a review by the British Columbia Securities Commission, Prophecy is issuing the following news release to retract certain disclosures previously made regarding its Gibellini, Pulacayo and Titan properties.
Gibellini Property
The Company retracts all disclosure relating to resources, mining, processing, and economic assessment contained in its June 22, 2017 Gibellini presentation, on the "resource" page and "Gibellini project" pages of its website, in Annual Information Forms ("AIFs"), in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&As") and in news releases concerning the Gibellini project, and for similar reasons, the Louie Hill project. The Company notes that:
Disclosures were of "historical estimates" as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), but without compliance with Section 2.4 of NI 43-101. These historical estimates did not include any more recent data or estimates, and a qualified person (as defined under NI 43-101) has not done sufficient work to classify these historical estimates as current mineral resources.
Dsclosures of economic assessments and decisions concerning mining and related activities were supported only by a historical resource estimate. The Gibellini Project does not have a current mineral resource or mineral reserve estimate compliant with NI 43-101, and as such there can be no reliable economic assessments or forecasts made of the Gibellini Project at this time under NI 43-101. Any previous disclosures of economic assessments and resulting disclosures should not be relied upon.
The Company advises that these disclosures are not suitable for public disclosure because they are not supported by a technical report compliant with NI 43-101, and the resource estimates and economic assessment should not be relied upon until they have been verified and supported by a NI 43-101 compliant technical report. Prophecy will remove the statements from those forms of disclosure where possible.
Pulacayo Property
The Company retracts disclosures relating to resources, mining, processing, and economic assessment contained in its AIF dated March 29, 2017, the Company presentation, the "resource" page and "Pulacayo project" pages of its website, in Annual Information Forms ("AIFs"), in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MDAs") and in news releases concerning the Pulacayo project The Company notes that:
Disclosures of material scientific and technical information were supported by historical estimates only and not a NI 43-101 compliant technical report. Further, the disclosed economic analyses were supported by historical estimates only and not a NI 43-101 compliant technical report, and as such there can be no reliable economic assessments or forecasts made of the Pulacayo Project at this time under NI 43-101. Any previous disclosures of economic assessments and resulting disclosures should not be relied upon.
Separate disclosures were made of resource estimates for the Pulacayo Project and Paca Project. However, for deposits meeting the definition of "property" as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects Companion Policy ("NI 43-101CP") 1.1(6) the resource estimates must be reported in one technical report.
The Company advises that these disclosures are not suited for public because they are not supported by a technical report compliant with NI 43-101, and the resource estimates and economic assessment should not be relied upon until they have been verified and supported by a NI 43-101 compliant technical report. Prophecy will remove the statements from those forms of disclosure where possible.
Titan Property
The Company retracts all disclosures relating to the Titan Project. These disclosures are not supported by a NI 43-101 compliant technical report. The Company advises that these disclosures are not suited for public disclosure because and the technical report filed in December 2010 does not comply with the requirements of NI 43-101. Any mineral resource estimates regarding the Titan Project are not supported by a compliant NI 43-101 technical report and should not be relied upon until they can be supported by a compliant NI 43-101 technical report. Prophecy will remove the statements from those forms of disclosure where possible.
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 is not independent of the Company in that most of his income is derived from the Company. Mr. Kravits 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:
+1.604.563.0699
+1.888.513.6286
[email protected]
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 historical 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 and 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 achievements 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 subject 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 resource 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 will 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 under 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, development 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 reliance 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 believes 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 addition, 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 not 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.
SOURCE: Prophecy Development Corp.