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Prophecy to purchase Prophecy Platinum Corp. shares to pay repay debt

By B.Khash-Erdene

Canadian coal miner, Prophecy Coal Corp. announced that it has accepted an offer to purchase 17,300,000 shares of Prophecy Platinum Corp. (PPC) representing 22.42 percent of the issued and outstanding shares of PPC.

The company anounced that the closing of the purchase and sale has been scheduled for October 29, 2013. The purchase and sale agreement is subject to termination by the purchaser in the event of an adverse material change or force majeure event. Proceeds from the sale of PPC shares will be used to repay outstanding debt due October 31, 2013 to Waterton Global Value LP in the approximate amount of seven million USD.

Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. The company’s wholly-owned subsidiary Prophecy Power Generation LLC is advancing plans for a proposed 600 MW mine-mouth power plant, which has been permitted by the Mongolian government, adjacent to its Chandgana coal deposit. Chandgana Coal LLC, another Prophecy wholly-owned Mongolian subsidiary, is expected to supply 3.5 million tons of coal per year to Prophecy Power for 25 years. Chandgana Coal LLC controls over 1.2 billion tons of thermal coal in the measured and indicated categories, including two mining licenses containing 124 million tons of measured resource with a strip ratio of 0.7:1.

Short URL: http://ubpost.mongolnews.mn/?p=6536

Posted by on Oct 29 2013. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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