Prophecy Coal Still In Discussion With Tethys

Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2) reported that the Company is in continuous discussion with Tethys and its representatives regarding the purchase of Tulgalgatai coal licenses.

As quoted in the press release:

Pursuant to the credit agreement (the “Credit Agreement”) between Prophecy and the Company’s creditor, Waterton Global Value, L.P. (“Waterton”), the expiry of the original purchase and sales agreement with Tethys constituted a default under the Credit Agreement. Waterton has agreed to waive the default, subject to (a) Prophecy setting aside $3.5 million in escrow for purchase of the Licences and repayment of the loan; (b) Prophecy agreeing to issue 2 million common shares to Waterton, subject to TSX exchange approval; and (c) Prophecy agreeing to pledge additional security to Waterton.

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