Prophecy Coal closes $10 mln private placement financing

Coal miner Prophecy Coal (TSE:PCY) said after markets closed Thursday that it closed a previously announced $10.06 million non-brokered private placement financing.
The company sold 22.36 million shares priced at 45 cents each. That is up from the initial 20 million Prophecy originally planned to sell.
Prophecy said company insiders invested $508,500, and together with existing shareholders, subscribed for a majority of the financing.
Cash finder’s fees of six percent of the proceeds were paid to some arms-length portions of the placement, the company said.
Prophecy said it will use funds for technical work to bring its Chandgana thermal coal power plant project, found in Mongolia, toward development. The profits will also be used for general working capital.
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.