Prophecy Platinum Has Entered into $2 Million Intercompany Loan Facility with Prophecy Coal

- December 30th, 2011

Prophecy Platinum Corp. (TSXV:NKL,OTCQX:PNIKF,FWB:P94P) has entered into an intercompany loan facility with Prophecy Coal. The Inter-Co Facility will allow either company to provide and request short term funding from the other, provided that such loans would be due 60 days after demand. Prophecy Coal has made an initial request to draw down $500,000 of the Inter-Co Facility.

Prophecy Platinum Corp. (TSXV:NKL,OTCQX:PNIKF,FWB:P94P) has entered into an intercompany loan facility with Prophecy Coal. The Inter-Co Facility will allow either company to provide and request short term funding from the other, provided that such loans would be due 60 days after demand. Prophecy Coal has made an initial request to draw down $500,000 of the Inter-Co Facility.

As quoted in the press release:

As Prophecy Coal is a control person of the Company, the Inter-Co Facility is a ‘related party transaction’. Special committees of independent directors from both companies reviewed and approved the Inter-Co Facility. The size and nature of the Inter-Co Facility make it exempt from related party transaction rules including minority shareholder approvals.

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