Prophecy Secures $10 Million Loan to Acquire Tugalgatai Coal Licenses, Mongolia
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/16/12 -- Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) has arranged a $10 million secured debt facility (the "Loan") with Waterton Global Value, L.P. ("Waterton Global"). The funds will be used to complete the purchase of the Tugalgatai, Mongolia coal licenses on which a large coal resource is known to exist as described in the Company's news release of June 18, 2012. The Loan has a one year term and bears interest at 14% per annum. A structuring fee of 2.5% plus a bonus of $600,000 are payable through the issuance of 2,735,617 of the Company's common shares on closing of the Loan which occurred today. These shares are subject to a four month hold period.
John Lee, CEO of Prophecy, stated today that, "We appreciate Waterton Global's continuing support. The proceeds will fully fund completion of the acquisition of Tugalgatai coal licenses which are expected to significantly increase our coal resources."
Cheryl Brandon, Portfolio Manager at Waterton Global, stated, "We look forward to working with Prophecy Coal to finance the Company as they continue to expand in the Chandgana Coal Basin. The Waterton Global facility provides the required capital to complete the recently announced $10 million coal license acquisition and implement the company's production growth strategy in the region."
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. Prophecy's Ulaan Ovoo mine has achieved production status. 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 being pursued.
Further information on Prophecy Coal can be found at .
ON BEHALF OF THE BOARD OF 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 future plans and objectives of the companies 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 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.
Chris Ackerman
Senior Manager, Investor Relations
1-800-459-5583
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Datum: 16.07.2012 - 21:30 Uhr
Sprache: Deutsch
News-ID 165654
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contact information:
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VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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