Prophecy Coal announces $9 mln private placement financing

Coal miner Prophecy Coal Corp. (TSE:PCY) reported Thursday it has arranged a non-brokered private placement financing worth $9 million as it seeks to advance development of its thermal coal plant project in Mongolia.
The company plans to sell 20 million shares for 45 cents each. Prophecy Coal said insiders and existing shareholders have subscribed for a majority of this offering.
Prophecy said finder's fees may be paid in connection with the financing in accordance with TSX Exchange policies. The offering is slated to close on March 7.
Prophecy said it will use funds for technical work to bring its Chandgana thermal coal power plant project, found in Mongolia, toward development. The proceeds will also be used for general working capital.
Additionally, the company also announced on Thursday that the credit facilities of $7 million announced on December 30, 2011 have been closed out. The $800,000 balance has been paid off and Prophecy remains debt free.
In November 2011, Prophecy Coal, a Vancouver-based company, received a license from the Mongolian government to build a 600 megawatt power plant at its Chandgana Tal thermal coal deposit.
The company has over 1.4 billion tonnes of near surface thermal coal resources on two coal properties in Mongolia.  Prophecy Coal's Chandgana 600 MW mine mouth power plant has been permitted and its Ulaan Ovoo coal mine is now in production.