Additional Information
Market: TSX, OTCBB
Sector: General Mining - Coal
EPIC: PCY
Latest Price: C$0.25  (4.17% Ascending)
52-week High: C$0.63
52-week Low: C$0.23
Market Cap: C$55.87M
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Prophecy Coal
www.prophecycoal.com

Prophecy Coal Corporation (TSX: PCY, OTC-QX: PRPCF, Frankfurt: 1P2) is an internationally diversified thermal coal production company that in November 2010 saw its first coal project, Ulaan Ovoo commissioned for production. The company controls over 1.4 billion tonnes of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated) between 2 distinct deposits with power plant plans for its second deposit (Chandgana's) well under way. Additionally Prophecy Coal Corp holds the Okeover Copper project and the Titan, Vanadium Iron ore & Titanium projects in Canada.

Pdf

Prophecy Resource to acquire exploration license near Ulaan Ovoo; appoints new CFO

6th May 2011, 8:17 pm by Deborah Sterescu

Vancouver-based Prophecy Resource (CVE:PCY) (OTCQX:PRPCF) said late yesterday that it has signed an option agreement with a private Mongolian company, giving Prophecy the right to acquire 100% of an exploration license near its Ulaan Ovoo coal mine.

Under the terms of the deal, Prophecy will pay the seller US$2 million within the first year, or US$4 million in the second year.

The 4,773-hectare property being acquired has an existing, fully transferable exploration license, located 17 km northeast of Prophecy’s producing Ulaan Ovoo coal mine in Mongolia, and on the same structural basin.

According to Prophecy, recent reconnaissance programs, including geophysical work to date, indicates the presence of shallow sedimentary rocks up to 100 metres in thickness, which demonstrate the potential for coal discovery.

Prophecy plans to start drilling operations on the 4,773 hectare property in June this year.

A 2% net royalty on production from the property is payable to the seller, which can be purchased at any time by Prophecy for US$1.0 million before April 21, 2013. The transaction remains subject to regulatory approvals.

Separately, Prophecy also announced Thursday that it has appointed David Jan as the company's new CFO.

Jan joins Prophecy from Western Coal Corp, where he was head of investor relations, prior to its merger with Walter Energy.

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