VMS Options Lynn Gabbros Property to Prophecy Resource Corp.
January 12 2010 - 9:00AM
Marketwired
VMS Ventures Inc. (TSX VENTURE: VMS) (the "Company") is pleased to
announce it has entered into an agreement with Prophecy Resource
Corp. (TSX VENTURE: PCY) whereby Prophecy has been granted the
option to earn a 100% interest in the Lynn Gabbros property,
located in Manitoba, Canada near Prophecy's recently acquired Lynn
Lake Nickel-Copper project.
The Lynn Lake Nickel Camp is located in northern Manitoba, about
320 km by road access, northwest of the Thompson mining camp.
Historically, Lynn Lake is the third largest nickel producing
region in Canada. Sherritt Gordon Mines Ltd. mined the Lynn Lake
nickel-copper deposits from 1953-1976. The Main and EL gabbro plugs
produced 20,151,146 tonnes of ore at an average grade of 1.023%
nickel and 0.535% copper from two mines over the 24-year
period.
Prophecy currently has the option to earn a 100% interest in the
Main Gabbroic Plug from Victory Nickel. According to a Technical
Report dated December 5, 2007 prepared by Wardrop Engineering for
Independent Nickel Inc., the Main Plug contains a National
Instrument 43-101 compliant, Measured and Indicated resource of 17
million tonnes with an average grade of 0.62% nickel and 0.31%
copper. (This Technical Report can be accessed under Independent
Nickel's filing at www.sedar.com.) By acquiring the Lynn Gabbros
claims, which include five gabbro plugs, from VMS, Prophecy now has
six of the seven known gabbro plugs in the Lynn Lake area and is
now the dominant player in terms of land size and resource base in
the Lynn Lake Nickel camp. A map of the gabbros identified at Lynn
Lake can be accessed at www.prophecyresource.com.
Under the agreement, in order to acquire a 100% interest in the
VMS Lynn Gabbros property, subject to a 3% NSR, Prophecy will issue
750,000 of its common shares to VMS Ventures. Prophecy will also
reimburse VMS Ventures up to $100,000 to satisfy certain work
obligations to be performed by VMS prior to the title transfer by
June 1, 2010.
Separately, VMS Ventures Inc. has agreed to make a strategic
investment in Prophecy totaling $300,000 by subscribing to 1
million units under the same terms the Prophecy private placement
announced December 9, 2009. On a partially diluted basis, VMS
Ventures would own approximately 8% of Prophecy.
Rick Mark, Chairman and CEO of VMS Ventures states: "Prophecy's
commitment to exploring and developing the Lynn Lake Mine and
surrounding area has impressed our Board. We believe the
opportunity to own a significant percentage of the complete Lynn
Lake play through our option agreement and investment will produce
benefits to VMS shareholders in the near and longer term. We have
worked with John Lee in the past and feel Prophecy has the best
chance to make the Lynn Lake mine and the surrounding properties a
business success."
John Lee, Chairman of Prophecy states: "Lynn Lake fits perfectly
with our business strategy of acquiring advanced mineral assets to
provide Prophecy investors financial leverage on rising metal
prices. Prophecy is very pleased to acquire and consolidate this
premier Lynn Lake Nickel Camp, where we intend to conduct an
extensive exploration program in 2010."
All technical information in this release has been reviewed by
Dr. Mark Fedikow, P.Geo, who is the Qualified Person for the
Company and Vice President of Exploration and Technical Services,
VMS Ventures Inc.
VMS Ventures Inc. currently has a profile on Corebox.net which
is updated as soon as assay results are released. The link to visit
our Corebox profile is:
http://www.corebox.net/properties/reed_lake/.
Investors are invited to visit the VMS Ventures IR Hub at
http://www.agoracom.com/IR/VMSVentures where they can post
questions and receive answers or review questions and answers
already posted by other investors. Alternatively, investors are
able to e-mail all questions and correspondence to VMS@agoracom.com
where they can also request to be added to the investor e-mail list
to receive all future press releases and updates in real time.
VMS Ventures Inc. is focused primarily on acquiring, exploring
and developing copper-zinc properties in the Flin Flon-Snow Lake
VMS Belt. The Company also holds the largest land package
considered prospective for nickel-copper mineralization at Lynn
Lake, which is to date Canada's third largest nickel producing
camp. The Company's project portfolio consists of the Snow Lake VMS
project, the Lynn Lake Gabbros nickel-copper project, the Nickel
Belt project and the South Bay nickel-copper-cobalt PGE property.
All VMS Ventures Inc. properties are located in the mining friendly
province of Manitoba, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
John Roozendaal B.Sc., President & Director
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.
Contacts: VMS Ventures Inc. Keith Patey Director of
Communications (604) 986-2020 or Toll Free: 1-866-816-0118 (604)
986-2021 (FAX) www.vmsventures.com Coal Harbor Communications Dale
Paruk (604) 662-4505 or Toll Free: 1-877-345-3399
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