Form 6-K PROPHECY DEVELOPMENT For: Jul 19
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER
THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of July
2019
Commission
File Number 000-55985
PROPHECY DEVELOPMENT CORP.
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(Translation
of registrant’s name into English)
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Suite 1610 – 409 Granville Street
Vancouver, British Columbia, Canada V6C 1T2
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(Address
of principal executive offices)
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Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F
Form
20-F
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☒
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Form
40-F
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☐
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1):
☐
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Note: Regulation S-T Rule 101(b)(1) only permits
the submission in paper of a Form 6-K if submitted solely to
provide an attached annual report to security holders.
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Indicate
by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule
101(b)(7): ☐
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Note: Regulation S-T Rule 101(b)(7) only permits
the submission in paper of a Form 6-K if submitted to furnish
a report or other document that the registrant foreign private
issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or
legally organized (the registrant’s “home
country”), or under the rules of the home country exchange on
which the registrant’s securities are traded, as long as the
report or other document is not a press release, is not required to
be and has not been distributed to the registrant’s security
holders, and, if discussing a material event, has already been the
subject of a Form 6-K submission or other Commission filing on
EDGAR.
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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PROPHECY
DEVELOPMENT CORP.
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Date: July 19, 2019 |
/s/ Rocio Echegaray
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Rocio Echegaray |
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Corporate Secretary |
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INDEX TO EXHIBITS
99.1
News release dated July 19, 2019
Exhibit
99.1
Prophecy to Submit Key State Permit Applications by end of Q3 2019
for its Gibellini Vanadium Project
Vancouver, British Columbia, July 19, 2019 – Prophecy
Development Corp. (“Prophecy”
or the “Company”) (TSX:PCY,
OTCQX:PRPCF, Frankfurt:1P2N) is
pleased to update its objectives for the second half of 2019 for
its Gibellini Vanadium Project (the “Gibellini
Project”).
With the submittal of its updated Plan of Operations/Reclamation
Permit Application to the Bureau of Land Management, Mount Lewis
Field Office (the “BLM”) and the Nevada Division of Environmental
Protection (“NDEP”) on June 28, 2019 and appointment of the
National Environmental Policy Act (“NEPA”) contractor, SWCA Environmental
Consultants (“SWCA”) to prepare the Environmental Impact
Statement (“EIS”) for the Gibellini Vanadium Project,
Prophecy is moving forward to submit the key Nevada state permit
applications required for project construction by the end of the
third quarter 2019. It is anticipated that all approvals will be
received by first quarter 2021.
Given the significantly shortened timeline for conducting an EIS
under Secretarial Order 3355 (3355) (12 months from publication of
the Notice of Intent (“NOI”) in the Federal Register to BLM issuance
of the Record of Decision (“ROD”)), it is essential that the Nevada State
permitting process is fully integrated with the Federal NEPA
process to ensure the 3355 timeline can be met. In order to support
this integration, Prophecy has implemented a project plan to
complete the following tasks:
1.
The Company has developed an Enhanced Baseline
Report (“EBR”) format with the BLM that allows early
identification of potential environmental impacts so the project
design can be optimized to avoid or minimize these impacts. The
EBR’s have been submitted to BLM, NDEP, the Nevada Department
of Wildlife (“NDOW”) and Eureka County to review and offer
suggestions on additional measures that could be taken to further
minimize potential impacts from the Project.
2.
The
Plan of Operations/Reclamation Plan that was submitted to the BLM
and NDEP on June 28, 2019 incorporated the proposed Environmental
Protection Measures for each resource identified in the EBR’s
that may be potentially affected.
3.
The Company is working closely with NDEP and the
Nevada Department of Health (“NDoH”) to incorporate these protection measures
into the State permit applications. Early
submittal of the state permit applications
will allow identification of issues that could affect the Gibellini Project
design that can be resolved to the satisfaction of federal and
state agencies prior to the start of the streamlined 3355 EIS
process (publication of the NOI).
4.
The
Nevada permits will include construction level designs of all the
facilities that must demonstrate protection of natural resources as
well as closure and reclamation plans that provide for the
long-term chemical and physical stability of the site and meet land
use objectives similar to the pre-mining land uses
5.
The
Company is working with key stakeholders early to identify issues
of concern that can be resolved prior to submittal of state permit
applications to further reduce the risk of any changes to the
project design during the 12-month 3355 EIS process. All
commitments made with project stakeholders can then be memorialized
in the EIS as Applicant Committed Practices.
Further supporting the Gibellini Project permitting, on June 4,
2019 the US Department of Commerce (“DoC”) issued a press release
on the 35-listed critical metals,
which shows United States has 100% import reliance on vanadium and
rare earth elements. DoC simultaneously published a
50-page
report titled “Federal
Strategy to Secure Supplies of Critical Metals,” which
outlined a strategy with highlight actions to:
●
Streamline
the permitting and review processes related to developing mining
claims or leases and enhancing access to the domestic critical
mineral resources, with emphasis on providing timely processing of
mining Plans of Operations and Environmental Impact
Statements.
●
Strengthen America’s Critical Mineral Supply
Chains and seek opportunities to “more effectively leverage
the National Defense Stockpile (“NDS”) Program and other industrial base
business assistance support programs.”
●
Develop
a publicly accessible online system to track milestones for mining
projects, including the time it takes State and Federal agencies to
review, process and issue permits.
Prophecy’s CEO, Mike Doolin, states: “We are very
encouraged by administration’s emphasis to provide timely
processing of mining Plans of Operations and EIS’s and the
Battle Mountain District Office of the BLM to work with Prophecy in
the strategic planning needed to meet the administration’s
policies, which will assist our goal of building Gibellini into the
first ever primary vanadium producing mine in the US by the end of
2022. We are in discussions with several global vanadium traders
and end users regarding vanadium sales and purchase contracts. We
believe positive progress from those off-take contracts and
permitting will significantly de-risk the Gibellini Project and
could materially enhance the Gibellini Project valuation going
forward.”
1
Qualified Person
The technical contents of this news release have been prepared
under the supervision of Danniel Oosterman, VP Exploration. Mr.
Oosterman is not independent of the Company in that he is employed
by the Company. Mr. Oosterman is a Qualified Person
(“QP”) as defined by the guidelines in NI
43-101.
About Prophecy
Prophecy
is developing the Gibellini project – the only large-scale,
open-pit, heap-leach vanadium project of its kind in North America.
Located in Nevada, Gibellini is currently undergoing EPCM and
Permit preparation. Prophecy also has mining projects in Mongolia
and Bolivia. Further information on Prophecy can be found at
www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
“Michael Doolin”
Chief Executive Officer
For more information about Prophecy, please contact Investor
Relations:
+1.604.569.3661 ext. 101
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
Some statements in this news release are about future events and
performance. Such statements are based on current estimates,
predictions, expectations, or beliefs. The subjects of the
statements include, but are not limited to, (i) the PEA
representing aviable development option for the project; (ii)
construction of a mine at the project and related actions; (iii)
estimates of the capital costs of constructing mine facilities,
bringing the mine into production, and sustaining the mine,
together with estimates of the length of financing payback periods;
(iv) the estimated amount of future production, of metal recovered;
and (vi) estimates of the life of the mine and of the operating and
total costs, cash flow, net present value, and economic returns,
including internal rate of return from an operating mine
constructed at the project. All forward-looking statements are
based on Prophecy’s or its consultants’ current beliefs
and assumptions, which are in turn based on the information
currently available to them. The most significant assumptions are
set forth above, but generally these assumptions include: (i) the
presence and continuity of vanadium mineralization at the project
at the estimated grades; (ii) the geotechnical and metallurgical
characteristics ofthe rock conforming to the sampled results; (iii)
infrastructure construction costs and schedule; (iv) the
availability of personnel, machinery, and equipment at the
estimated prices and within the estimated delivery times; (v)
currency exchange rates; (vi) vanadium sale prices; (vii)
appropriate discount rates applied to the cash flows in the
economic analysis; (viii) tax rates applicable to the proposed
mining operation; (ix) the availability of acceptable financing on
reasonable terms; (x) projected recovery rates and use of a process
method, which although well-known and proven with other commodity
types, such as copper, has not been previously brought into
production for a vanadium project; (xi) reasonable contingency
requirements; (xii) success in realizing proposed operations; and
(xiii) assumptions that the project’s environmental approval
and permitting is forthcoming from county, state, and federal
authorities. The economic analysis is partly based on Inferred
Mineral Resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no
certainty that the PEA based on these Mineral Resources will be
realized. Currently there are no Mineral Reserves on the Gibellini
property. Although the Company’s management and its
consultants consider these assumptions to be reasonable, given the
information currently available to them, they could prove to be
incorrect. Many forward-looking statements are made assuming the
correctness of other forward-looking statements, such as statements
of net present value and internal rates of return. Those statements
are based in turn on most of the other forward-looking statements
and assumptions made herein. The cost information is also prepared
using current values, but the time for incurring the costs is in
the future and it is assumed costs will remain stable over the
relevant period.
These factors should be considered carefully, and readers should
not place undue reliance on forward-looking statements by Prophecy
or its consultants. Prophecy and its consultants believe 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 correct. In addition, although Prophecy and
its consultants have attempted to identify important factors that
could cause actual actions, events, or results to differmaterially
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 and its consultants
undertake no obligation to publicly release any future revisions of
the forward-looking statements that reflect events or circumstances
that occur after the date of this news release or reflect the
occurrence of unanticipated events, except as expressly required by
law.
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