Prophecy Coal Enters Into Covenant With Mongolian Energy Authority on 600 MW Chandgana Power Project
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/28/12 -- Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) is pleased to announce that the Energy Authority of Mongolia ("EA") has entered into a Cooperation Covenant (the "Covenant") with Prophecy to bring the 600 MW Chandgana Power Project online by 2016.
The EA is the agency which implements governmental policy in the power and energy sector of Mongolia. The Covenant provides required support for the construction and operation of the Chandgana 600 MW (4 x 150 MW) mine-mouth power plant in central Mongolia and its capacity to supply the necessary electricity to the central and eastern region's power grids by 2016.
The Covenant also covers the basic rights and obligations of the Seller and Purchaser of the electric energy, including the following highlights:
John Lee, Chairman and CEO of Prophecy states: "We are very grateful for the support from various Mongolian government agencies to help bring the Chandgana Power Plant project online and on schedule. This landmark agreement forms the basis of our continued discussion regarding a PPA."
After lengthy legal, commercial, and technical consultations with a designated working group of more than 20 government members, the Company has prepared and submitted the power purchase agreement with full schedules to the Mongolian government for its review and comment. The next step will be to reach an agreement on tariff, followed by execution of the PPA.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. Prophecy's Ulaan Ovoo mine is in production. Prophecy's proposed 600 MW mine-mouth power plant adjacent to the Chandgana coal deposit has been permitted by the Mongolian government. Negotiations on financing, power purchase agreement and construction management are underway.
(i)Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Prophecy Coal Corp.
John Lee, CEO/Chairman
Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements regarding the possible sales of coal, the proposed power plant, future exploration and development plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include the failure to achieve a long-term power contract, the price of energy and commodities, access to capital, general economic, regulatory, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Mineral exploration and development of mines is an inherently risky business and large infrastructure projects such as power plants require huge amounts of capital which may not be available to Prophecy on terms which will allow its shareholders to realize a reasonable return or on any terms at all. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of its business, investors should review filings that are available at .
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Prophecy Coal Corp.
David Brook
Manager, Investor Relations
1-800-358-5865
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Unternehmensinformation / Kurzprofil:
Datum: 28.05.2012 - 12:30 Uhr
Sprache: Deutsch
News-ID 150403
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contact information:
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VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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