Read this first http://www.prospectingjournal.com/confidence-in-providence-teck-resources-makes-splash-in-iron-range-project/

Look at the sp history then read below. Look at the NRs leading up to the price decline and after it. ie. Highlights from Hole IR10-010 included 14.0m grading 5.1g/t gold and 75.3g/t silver from 192.0 to 206.0m and 8.5m grading 6.0g/t gold and 47.8g/t silver from 272.0 to 280.5m. Accompanying base metal values include 13.24% combined lead-zinc over 1.6m from 196.9-198.5m, and 9.24% combined lead-zinc over 2.0m from 277.5-279.5m, the latter of which is interpreted to lie at Sullivan Time.

Draw your own conclusions.

VANCOUVER, BRITISH COLUMBIA, Jan. 19, 2011 (Marketwire) --

Providence Capital Corp. (TSX VENTURE:PV) ("Providence" or the "Company") wishes to announce that it has arranged a non-brokered private placement of 1,000,000 shares at a price of $4.00 per share with Teck Resources Limited ("Teck") for total proceeds of $4,000,000.

The proceeds from this strategic investment will facilitate a more aggressive work program on the Iron Range Project, under which Providence holds the option to earn a 60 percent interest from Eagle Plains Resources Ltd. ("Eagle Plains"). In addition, Teck will provide access to additional technical support and organizational expertise. As the owner and operator of the historic Sullivan Mine, Teck brings a wealth of geological experience invaluable to the Iron Range Project.

Providence and Eagle Plains continue to test structural features and the stratigraphic interval known to host the Sullivan deposit, located 70km to the north. Current drilling is targeting both precious metal and base metal mineralization, following up on the recent program which intersected two intervals of gold-bearing massive sulphide mineralization, the lower interval which resides at a stratigraphic position interpreted to be at or near the same interval which hosts the Sullivan deposit (see PV/EPL news release December 21st, 2010).

"With the combination of Teck's historic knowledge and experience within the surrounding area and the skilled geological personnel of our partner Eagle Plains, we have a world class exploration and development team that will now be well funded throughout 2011," stated Steve Bajic, President of Providence.

An additional term of Teck's investment in Providence provides Teck an option to increase its interest in the Company to 9.9% by completing an additional private placement. This option may be triggered as follows:

Providence may provide notice to Teck at any time after at the later of (i) three months after the closing of the current private placement; or (ii) after Providence incurs additional expenditures of $1,600,000 on the Iron Range project, at which point Teck may elect to exercise the option or let it expire. The pricing of the additional placement in the Company will be at a price per share equal to a 40% premium to a 10 day trading average; or (ii) a 10% to 40% premium (based on certain conditions) to the price of any coinciding third party financing announced by Providence at the time of the notice.

Should the Company not provide Teck notice as outlined above prior to the later of (i) nine months after the closing of the current private placement; or (ii) upon Providence incurring an aggregate of $3,400,000 in additional expenditures on the Iron Range project, Teck may elect to increase its interest in the Company to 9.9% at a price per share equal to a 40% premium to a 5 day trading average. If Teck fails to exercise this right, the option to increase its interest to 9.9% expires.

Teck also has the right to maintain its percentage ownership in the Company by participating in future financings during a two year period provided that it holds at least a 3% shareholding in the Company. Teck has also been granted a right of first offer on the Iron Range project should the Company wish to sell its interest in the project during the same period.

Tim J Termuende, President and CEO of Eagle Plains, stated recently, "We welcome the participation of Teck to this exciting project. The confidence shown by Teck's current involvement coupled with its considerable financial and technical capabilities can only serve to significantly benefit the project as it moves forward."

Providence will also establish a Technical Advisory Committee which will include personnel from Teck, Eagle Plains and Terralogic Exploration Services to serve as a forum through which all parties can engage and review work programs, budgets, and results.

Providence holds the option to earn a 60 percent interest in the Iron Range Property by spending $3-million on exploration, making $500,000 in cash payments and issuing one million shares to EPL over four years. Approximately $700,000 has been spent to date as contemplated by the Joint Venture Agreement with Eagle Plains Resources.

In connection with the private placement and subject to regulatory approval, the Company may pay finder's fees in cash or securities to eligible finders in accordance with the policies of the TSX Venture Exchange. All securities will be subject to a four month hold period.

Iron Range project summary

The Iron Range deposits were originally staked in 1897, and were covered by Crown Grants held by Cominco Ltd. and the Canadian Pacific Railway. Eagle Plains staked the current claims immediately after the Crown Grants reverted in 2000, and have been exploring the property since then. Exploration work to date includes geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey. The Iron Range project is owned 100 per cent by Eagle Plains and holds no underlying royalties or encumbrances. An additional 35,800 hectares of claims were added to the existing land package, resulting in a total of 56,200 ha -- an area approximately 11 km by 50 km. The land package now covers over 30 km of the Iron Range structure, most of it unexplored.

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.

Providence Capital Corp.
President
(604) 628-5614
(604) 662-7950 (FAX)
www.providencecapital.ca