Prophecy Makes Strategic Investment in Compliance Energy Corporationadmin
Prophecy Resource Corp. reports that it has acquired 5,000,000 common shares of Compliance Energy Corporation (“Compliance”), representing approximately 8% of Compliance outstanding shares by means of a non-brokered private placement. Compliance’s majority interest is the Raven Coking Coal Project located on Vancouver Island, Canada in addition to other coal projects totaling 75,000 associated exploration and development acres. The investment represents Prophecy’s first foray into the metallurgical coal market to complement its substantial 100% owned open-pittable thermal coal resources in Mongolia (839 Mt Measured, 579 Mt Indicated). The Raven Underground Coal Project contains high volatile A Bituminous coal suitable for targeting the metallurgical coal market as a blend product or the thermal coal market. The project is owned 60% by Compliance Energy and 40% by a subsidiary owned by Itochu Corporation of Japan and LG International Corp. of Korea. Prophecy paid CDN $1,750,000 (or $0.35 per share) for its interest in Compliance Energy. The total coal tonnage at the Raven Underground Project (as reported by Pincock, Allen and Holt in its NI 43-101 resource estimated in April 2010) is 71,998,201 tonnes of measured and indicated and 59,430,517 tonnes of inferred.