Prophecy Granted Landmark Chandgana Power Plant License (Maps Included)
Nov 21, 2011
OTC Disclosure News Service
Vancouver, BC, Canada –
VANCOUVER, BRITISH COLUMBIA, November 21, 2011 – Prophecy Coal Corp. (“Prophecy”) (TSX: PCY)(OTCQX: PRPCF)(Frankfurt: 1P2) (the “Company”) is pleased to announce that its wholly-owned Mongolian subsidiary, East Energy Development LLC, has received the license certificate from the Mongolian Energy Regulatory Authority to construct the 600 MW Chandgana power plant.
In terms of size, this 600 MW (150 MW x 4) thermal power plant license is the first ever issued by the Mongolian government. To ensure strict compliance with Mongolian laws and regulations in obtaining this license, Prophecy retained a number of Mongolian and international consultants over the past 18 months. Considerable efforts were also spent on community relations.
Coal for the Chandgana mine-mouth power plant will be supplied from Prophecy’s Chandgana Tal (“Tal”) Deposit, for which the company has already obtained a full mining license. Tal contains 141 million tonnes of measured coal and is located just 9 km north of Prophecy’s Chandgana Khavtgai project; a deposit with over 1 billion tonnes of measured and indicated coal.
Chandgana is 60 km from Underkhann city (East Energy System), and 150 km from Baganuur city (Central Energy System). Construction of transmission lines linking the two cities through Chandgana is seen as a top priority for a much improved and efficient national Mongolian energy system.
John Lee, Chairman and CEO of Prophecy states: “Prophecy has distinguished itself as the premier candidate to build the next Mongolian thermal power plant. There is an understanding among all stakeholders that Mongolia, being one of world’s fastest growing economies, needs additional power. With the IMF projecting a deficit of over 600 MW by 2016, this need has become critically urgent and can no longer be delayed.”
The license issuance paves the way to conclude Engineering, Procurement and Construction contractor (EPC) selection, Power Purchase Agreement (PPA) and Project Financing arrangement in 2012. Many of these discussions have been ongoing since early 2011. The target construction commencement date is Q1 of 2013.
“Prophecy has successfully navigated the permitting process through the diligent and concerted efforts of all those involved, and are grateful to the citizens and government of Mongolia for their continued support. With the above timeline in mind, we will focus on the next phases of development in order to achieve our goal of starting-up the first unit by January 2016. We look forward to working with all relevant agencies, authorities, and communities to commission the Chandgana plant. We are confident that our goals will be achieved within the stated timelines.” Mr. Lee states.
Mongolia Central Electricity System and East Energy System
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 of surface minable thermal coal resources on two coal properties in Mongolia. Prophecy Coal’s Ulaan Ovoo coal mine is in production and its Chandgana mine mouth power plant has been permitted. Prophecy Coal is the controlling shareholder of Prophecy Platinum Corp (TSX-V: 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.
For more information about Prophecy, please contact
Manager, Investor Relations
Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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.
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 potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future 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 failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. 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 their businesses, investors should review their annual filings that are available at www.sedar.com.
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