Prophecy Coal to Acquire Silver-Zinc-Lead Project from Apogee Silver

- October 15th, 2014

Prophecy Coal Corp (TSX:PCY,OTCQX:PRPCF,FWB:1P2) has entered an agreement with Apogee Silver Ltd. whereby Prophecy will acquire the advanced Pulacayo-Paca silver-lead-zinc mining project in Bolivia.

Prophecy Coal Corp (TSX:PCY,OTCQX:PRPCF,FWB:1P2) has entered an agreement with Apogee Silver Ltd. whereby Prophecy will acquire the advanced Pulacayo-Paca silver-lead-zinc mining project in Bolivia.

As quoted in the press release:

Under the Letter Agreement, Prophecy will acquire Apogee’s subsidiaries: Apogee Minerals Bolivia S.A. and ASC Bolivia LDC (which in turn, holds ASC Bolivia LDC Sucursal Bolivia) (the “Apogee Subsidiaries”) which hold the Pulacayo-Paca joint venture by paying Apogee $250,000 in cash and issuing Apogee 60 million Prophecy Class B convertible, non-voting shares (the “Class B Shares”) (the “Proposed Transaction”). The Class B Shares will become eligible for conversion by Apogee, to an equivalent number of listed Prophecy common shares in tranches over a two-year period, when certain price levels of the Prophecy shares trading on the TSX are met, or in the face of certain major triggering events. Prophecy has agreed to assume all liabilities of the Apogee Subsidiaries.

The Proposed Transaction would provide Apogee shareholders with liquidity and an opportunity to team up with Prophecy’s mining production experience in a challenging investment climate. Apogee shareholders would also be able to participate in the potentially significant upside of both the Pulacayo-Paca and Prophecy’s coal and energy projects. By combining advanced-stage mining and energy projects in different geographic regions, Prophecy will diversify its project portfolio by adding exposure to multiple commodities, broadening its appeal to Asian, European and American investors; and mitigating perceived political risks.

Click here to read the Prophecy Coal Corp (TSX:PCY) press release

Get the latest Coal Investing stock information

Get the latest information about companies associated with Coal Investing Delivered directly to your inbox.

Coal Investing

Leave a Reply