Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2) recieved a non-binding letter of intent from a qualifed EPC contractor on a project equity investement of up to 20% in the Project. The Company was also issued indicative terms and conditions by a major international bank for a proposed loan in order to develop the Chandgana Tal 4X150MW Power Plant Project in Mongolia. 85% of the total value of the commercial contract will be financed by the proceeds of the Loan and certain conditions, such as the execution of all relevant project and loan documentation are precedent to the Loan.
As quoted in the press release:
Conditions precedent to the proposed Loan include, but are not limited to the following:
- receipt of all authorizations from all relevant authorities in Mongolia and China;
- approval from an export credit agency and by the credit committee of the Potential Lender;
- completion of due diligence and preparation of required documentation each to the satisfaction of the Potential Lender; and
- the execution of all relevant project and loan documentation.