Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2) has entered into a binding Sale and Purchase Agreement to acquire assets relating to certain Tugalgatai coal exploration licenses from Tethys Mining LLC , and subject to approval from the Minerals Resource Authority of Mongolia, to have such exploration licenses transferred to it.
As quoted in the press release:
The Tugalgatai licenses are contiguous to the Company’s Chandgana licenses which host a measured resource of 650 million tonnes and an indicated resource of 540 million tonnes of thermal coal.
According to records reviewed by Prophecy, on March 15, 2011, Tethys applied to register a resource estimate of 2.33 billion tonnes of thermal coal for the Tugalgatai licenses with the Minerals Resource Council of Mongolia. The resources registered by Tethys are not NI 43-101 compliant. Prophecy expects to conduct work in due course with a view of preparing its own NI 43-101 estimate of the contained resource at Tugalgatai.
Prophecy Chairman and CEO John Lee said:
“By consolidating the Chandgana coal basin of approximately 300 squared kilometers, Prophecy is looking for greater economies of scale to potentially produce low-cost electricity at the Chandgana mine mouth power plant, and further develop coal to chemicals and coal gasification projects. It’s also possible to further increase the resource through exploration in this highly prospective basin.”