Eurasia Capital: Prophecy Coal Corp. to Complement Obsolete Power Plants in Mongolia

Significant Progress with Chandgana Power Plant. In November 2011, the company received a power plant licence from the Mongolian Energy Regulatory Authority. In January 2012, Prophecy Coal Corp. (PCY) announced a positive feasibility study for the Company’s 600 MW Chandgana Mine-Mouth Power Project in Central Mongolia. The feasibility study states that based on a 70%-30% debt to equity capital structure and discount rate of 12%, the project generates post-tax NPV of US$364.7mn. The company expects to conclude a Power Purchase Agreement (PPA) with Mongolian authorities and sign EPC contract in 2Q 2012. We believe that once PPA and EPC contracts are in place, the company will be in a strong position to secure long term project financing for power plant construction that is expected to commence in the beginning of 2013. PCY is planning a two-phase development, where second phase will seek to add significant power capacity to supply electricity to Chinese market. To read the full article, click here:   Prophecy Coal Corp. to Complement Obsolete Power Plants in Mongolia

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