Prophecy Development Offers Project Update and New Sales Report

Prophecy Development (TSX:PCY,OTCQX:PRPCF,FWB:1P2N) has announced it will start production at its Mongolian Ulaan Ovoo mine with an estimated 21,000 tonnes of coal production and sales.

As quoted from the press release:

Multiple local and international consumers have expressed interest to buy Ulaan Ovoo coal; Prophecy is pleased with the rate of progress and plans to report quarterly sales and operational update.

With nameplate production capacity of 2 million tonnes per year, Ulaan Ovoo is a fully-permitted large coal field featuring a single, massive coal seam of 40 to 80 metre thickness outcropping at surface with a low strip ratio carrying minimal technical risk.

As reported in the Company news release dated October 16, 2018, that the company executed a lease agreement with an arms-length private Mongolian company whereby the lessee performs mining operations at Prophecy’s Ulaan Ovoo coal mine, and will pay Prophecy US$2 for every tonne of coal shipped from the Ulaan Ovoo site premises. The lessee is responsible for all capital and operating expenses, government taxes and royalties related to Ulaan Ovoo operation.

Since the signing of the Lease, the Lessee has spent approximately US$700,000 on supplies, housing and crew and restarted Ulaan Ovoo with its own equipment. Lessee plans to start double shifts is April to meet demand.

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