Prophecy Coal Arranges $9 Million Private Placement
March 01 2012 - 9:38AM
Marketwired
Prophecy Coal Corp. ("Prophecy" or the "Company")
(TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces that the Company
has arranged a non-brokered private placement of approximately
20,000,000 shares at a price of $0.45 per share to raise aggregate
gross proceeds of $9,000,000.
Company insiders and existing shareholders have subscribed for a
majority of this financing.
Finder's fees may be payable in connection with the financing in
accordance with the policies of the TSX Exchange.
Closing of the placement is anticipated to occur on or before
March 7, 2012.
Proceeds of the placement will be applied to the relevant
technical work requirements to bring the Chandgana Thermal Coal
Power Project, located in Mongolia, toward development, in addition
to general working capital.
The Company also wishes to announce the credit facilities of $7
million announced on December 30, 2011 have been closed out. The
$800,000 balance has been paid off and Prophecy remains debt
free.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in
developing energy projects in Mongolia. The company has over 1.4
billion tonnes(i) of near surface thermal coal resources on two
coal properties in Mongolia. Prophecy Coal's Chandgana 600 MW mine
mouth power plant has been permitted and its Ulaan Ovoo coal mine
is now in production. Prophecy Coal is the controlling shareholder
of Prophecy Platinum Corp. (TSX VENTURE:NKL). Mineral resources
that are not mineral reserves do not have demonstrated economic
viability. Further information on Prophecy Coal can be found at
www.prophecycoal.com.
ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Coal Corp.
John Lee, CEO/Chairman
(i) Includes 1.2 billion tonnes at the Chandgana coal project
based on NI 43-101 technical reports completed in September, 2007
and September, 2010.
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 www.sedar.com.
"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 1-800-358-5865dbrook@prophecycoal.com
www.prophecycoal.com