Shareholders of Prophecy and Red Hill Approve Merger
Tuesday, April 13th, 2010
Prophecy Resource Corp. (TSX-V:PCY, OTC: PCYRF, Frankfurt: 3P1) and Red Hill Energy Inc. (TSX-V:RH) – (-collectively, “the Companies” or “new Prophecy” ) announce that their respective shareholders have approved merging the Companies by way of a Plan of Arrangement. The votes were tabulated during separate extraordinary shareholder meetings held earlier today. 100.00% of Prophecy votes and 99.64% of Red Hill votes supported the transaction.
Completion of the arrangement remains subject to approvals from the British Columbia Supreme Court and the TSX Venture Exchange. Red Hill and Prophecy will seek final approval from the B.C. Supreme Court for the Arrangement at a hearing to be held on April 13, 2010, with arrangement completion date on or before April 19, 2010. The Companies will thereafter be named Prophecy Resource Corp. and is expected to begin trading on or before April 19th 2010, under the trading symbol TSX-V.PCY OTC: PCYRF, Frankfurt: 3P1)
John Lee of Prophecy Resource Corp has been appointed as Co-Chairman and CEO of the New Prophecy with Arnold Armstrong of Red Hill Energy as Co-Chairman.
Mr. Lee stated that: “This giant step taken today by our shareholders is but a small step towards creating the new Prophecy. The entire Prophecy team is committed to delivering exceptional equity returns for our shareholders by developing existing and acquiring new mineral assets, responsibly and in the quickest time frame possible.”
The company plans to commission the Ulaan Ovoo Coal project in northern Mongolia to production this year, and anticipates making additional acquisitions to complement its nickel, copper, and vanadium assets.