Apogee Silver to Sell Bolivia Project to Prophecy Coal

- October 15th, 2014

Apogee Silver Ltd. (TSXV:APE) has entered into an agreement with Prophecy Coal Corp. (TSX:PCY) under which Prophecy will acquire Apogee’s subsidiaries, Apogee Minerals Bolivia SA and ASC Bolivia LDC, in order to acquire the Pulacayo-Paca silver-lead-zinc mining project.

Apogee Silver Ltd. (TSXV:APE) has entered into an agreement with Prophecy Coal Corp. (TSX:PCY) under which Prophecy will acquire Apogee’s subsidiaries, Apogee Minerals Bolivia SA and ASC Bolivia LDC, in order to acquire the Pulacayo-Paca silver-lead-zinc mining project.

As quoted in the press release:

In consideration, Prophecy will pay Apogee a cash fee in the amount of $250,000 and shall issue to Apogee 60,000,000 Class B convertible non-voting shares of Prophecy (the ‘Class B Shares’). The Class B Shares will become eligible for conversion by Apogee into an equal amount of listed shares of Prophecy in the following instances: a) over a two-year period in tranches with the first tranche to be converted within twelve months of the closing of the Proposed Transaction; (b) on an accelerated basis in the event that the Prophecy common shares are trading above certain prices for a period of no less than five consecutive trading days on the TSX; or (c) in the event of certain major triggering events relating to Prophecy. Prophecy has agreed to assume certain liabilities, including all legal and tax liabilities, associated with the Subsidiaries and the Pulacayo-Paca project.

Apogee Chairman G. Scott Paterson said:

We are confident that the highly experienced Prophecy Coal mining team, led by John Lee, will be able to bring the Pulacayo project into production in due course, adding value for both the Apogee and Prophecy shareholders. Through its holdings in Prophecy, Apogee shareholders will be able to simultaneously benefit in the potential upside of both the Pulacayo-Paca project and the Prophecy coal energy projects located in Mongolia. In addition the Proposed Transaction will provide the Company with immediate cash and near term liquidity to strengthen its balance sheet.

Click here to read the Apogee Silver Ltd. (TSXV:APE) press release.

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