Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2) has secured a $10 million loan with Waterton Global Value, L.P. to complete the purchase of the Tugalgatai, Mongolia coal licenses on which a large coal resource is known to exist.
As quoted in the press release:
The Loan has a one year term and bears interest at 14% per annum. A structuring fee of 2.5% plus a bonus of $600,000 are payable through the issuance of 2,735,617 of the Company’s common shares on closing of the Loan which occurred today. These shares are subject to a four month hold period.
Prophecy Coal CEO John Lee said:
We appreciate Waterton Global’s continuing support. The proceeds will fully fund completion of the acquisition of Tugalgatai coal licenses which are expected to significantly increase our coal resources.