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.
Prophecy advances Mongolian coal projects, produces 230,000t of coal at Ulaan Ovoo
Prophecy Coal (CVE:PCY) announced positive operational results for its first quarter on Thursday, despite widening losses.
The Mongolia-focused coal development company said that its losses stem from its merger with Prophecy Holdings and Northern Platinum, since larger companies often incur greater expenses, it said.
However, the first quarter saw Prophecy re-pay its $5 million debt facility, completely clearing the company of its debt.
It also began the sale of its Lynn Lake and Wellgreen nickel properties to Pacific Coast Nickel Corp in January, completing it five months later, a move that allows the company to focus on its Mongolia coal properties, while maintaining an upside in the nickel assets.
In exchange for its nickel properties, Prophecy received 450 million Pacific Coast shares, representing 44.5% of of Pacific Coast.
Meanwhile, at its Ulaan Ovoo coal mine near the Russian border in Mongolia, Prophecy said it produced nearly 230,000 tonnes of thermal coal, removing over 1.5 million bank-cubic-metres of waste in the process. The Vancouver, B.C.-based company also added 20,000 tonnes of coal, ready for export, to its stock yard.
Similarly, the Chandgana Power Plant, Prophecy’s flagship operation, which is located on the company's Chandgana coal project in southeast central Mongolia, is progressing.
Prophecy received a mining license for 141 million tonnes of coal, and submitted a feasibility study to the Mongolian Ministry of Natural Resources and Energy for approval, which it hopes to receive in the third quarter.
John Lee, Prophecy`s chairman, said the company is pleased with both the Ulaan Ovoo and Chandgana mines' progress.
Prophecy, whose stock on the TSX Venture Exchange was trading at $0.59 per share as of 1:01 pm EDT on Thursday, said it currently has over $100 million in assets.
