Prophecy Enters MOU for 1.2 Million Tonne Per Year Coal Off Take With JUST Group

- January 5th, 2011

Prophecy Resource Group (CVE:PCY) announced that it has entered into a MOU with JUST group regarding coal sales from Prophecy’s Ulaan Ovoo mine

Prophecy Resource Group (TSXV:PCY) announced that it has entered into a MOU with JUST group regarding coal sales from Prophecy’s Ulaan Ovoo mine.
The press release is quoted as saying:

The minimum sales price at Nauski, the northern Mongolian-Russian border crossing, is set at US$35 per tonne of coal, subject to quarterly market adjustment. As total consideration for its services, JUST will receive a 3% commission of the final coal sales price. Both Prophecy and JUST will also cooperate to rail Ulaan Ovoo coal to Russian east seaports in the soonest time frame possible, where coal of Ulaan Ovoo’s quality is trading at a 2 year high of $84/tonne.

John Lee, CEO of Prophecy, says:

“Since Ulaan Ovoo’s commissioning in October, Prophecy has received numerous expressions of coal off take interest from both local Russian power plants and far east clients at Russian east seaports. Our alliance with JUST ensures seamless coal delivery to end customers. Again I’d also like to thank the Mineral Resources Authority of Mongolia and the Ministry of Mineral Resources and Energy for expediting Ulaan Ovoo permitting, which allows Prophecy to serve local and regional thermal plants in this harsh winter in times of need.”

To access the full release, click here.

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