Prophecy Submits Formal Request to Mongolian Government to Build Chandgana Power Plant
April 21 2011 - 8:30AM
Marketwired
Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:
PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) is pleased to report that after
8 months of due diligence, research and study, the Company has
submitted the formal request with the Ministry of Natural Resources
and Energy ("Ministry") to build the Chandgana Power Plant.
In August 2010, Prophecy engaged local Mongolian experts to
initiate a Feasibility Study for the Chandgana mine mouth power
plant with capacity of 600 MW, based on Prophecy's Chandgana coal
deposit located in Khentii province, central Mongolia. With further
assistance from Evonik Industries of Germany, the Prophecy team
completed the necessary technical and financial analysis, including
an Environmental Impact Assessment which was approved by the
Mongolian Ministry of Nature and the Environment in November 2010
(see Prophecy news release dated November 15, 2010) and a
Feasibility Study completed in accordance with Mongolia policies
for the granting of a permit to construct and operate a power plant
in Mongolia.
Prophecy's objective is to supply Mongolia with cleaner and
affordable energy and to eliminate expensive and growing foreign
electricity import. A number of antiquated Mongolian coal power
plants are due to be decommissioned and Prophecy intends to build a
modern 600MW thermal power plant complex at Chandgana and connect
the power plant with Mongolia's existing Central and Eastern energy
systems. This integration is critical to fuel Mongolia's growth and
is part of the long term energy development policy of Mongolia. As
the project scales up to 4,200MW, there is potential to export
surplus power to China, with its capital Beijing located
approximately 1,000km (600 miles) to the south. An independent
transmission line study to connect Chandgana to China commenced in
February. Prophecy has been in discussion with various investment
banks interested in providing Chandgana with project financing.
Upon receiving Ministry's endorsement, Prophecy would then
proceed to work with the Mongolian Energy Regulatory Authority
("ERA") for the issuance of the Power Plant Permit. Prophecy began
comprehensive discussions with the Ministry and ERA since last
October culminating in positive feedback for Prophecy to continue
with its objectives. The anticipated time frame for the power plant
permitting application process is 3 to 6 months.
John Lee, Chairman of Prophecy states that: "Prophecy officers,
directors and advisors have a solid track record of constructing,
operating and financing large energy projects. Chandgana Power
Plant represents modern industrialization and energy independence
for Mongolia, new potential energy supply to China, and further
accretion of significant value for Prophecy's shareholders."
About Prophecy Resource
Prophecy Resource Corporation is an internationally diversified
company engaged in developing energy, nickel and platinum group
metals projects. The company controls over 1.4 billion tons of
surface minable thermal coal in Mongolia (839 Mt Measured, 579 Mt
Indicated). Prophecy's Ulaan Ovoo coal mine is fully commissioned.
In Canada, Prophecy owns the Wellgreen PGM Project in Yukon, Lynn
Lake Nickel Sulphide Project in Manitoba, and equity stakes in
Victory Nickel Inc. and Compliance Energy Corp. On February 17,
Prophecy agreed to sell its PGM Nickel assets to Pacific Coast
Nickel Corp. for 450 million Pacific Coast Nickel shares. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Resource
Corp.
John Lee, Chairman
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
Northern and Prophecy believe 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, 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. Accordingly the actual events may differ
materially from those projected in the forward-looking statements.
For more information on Northern and Prophecy and the risks and
challenges of their businesses, investors should review their
annual filings that are available at www.sedar.com.
This press release does not constitute an offer to sell or a
solicitation to buy any of the securities in the United States. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended ("the U.S.
Securities Act") or any state securities law and may not be offered
or sold in the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.
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.
Contacts: Prophecy Resource Corp. John Lee Chairman
1.800.851.1528 john@prophecyresource.com Prophecy Resource Corp.
Scott Parsons 1.604.642.2625 ext. 106 Prophecy Resource Corp. Paul
McKenzie 1.604.642.2625 ext. 107 www.prophecyresource.com
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