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A term sheet for a secured debt facility of up to $5 million with a leading resource lender and a $2 million inter-company loan facility agreement with its controlled affiliate, Prophecy Platinum Corp, has been executed by Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2). The Debt Facility is currently subject to completion of the lender’s due diligence, TSX approval and completion of customary credit documentation.
As quoted in the press release:
The Debt Facility is due in fourteen months after its drawdown and bears interest at 10% per annum, compounded quarterly. A structuring fee of $50,000 is payable in cash as well as up to 1 million common shares of Prophecy Coal. The common shares issuable to the lender will be subject to a four month hold period. The Debt Facility is secured by a general security agreement and by a pledge of a number of Prophecy Platinum shares which must remain at 300% of the amount owed under the Debt Facility.
Click here to read the Prophecy Coal Corp. (TSX:PCY) press release
Click here to see the Prophecy Coal Corp. (TSX:PCY) profile.