VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2012) - Prophecy Coal Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce the following appointments:
Harald Batista to Prophecy's Board of Directors
Mr. Batista is an accomplished entrepreneur with over two decades of international sales and marketing experience. He holds an MBA degree from Santa Clara University in California and is a member of the prominent Batista family in Brazil that includes Eliezer Batista, the founder of Vale do Rio Doce Company (now Vale) and Eike Batista, the founder of EBX Group. EBX Group focuses on investment opportunities in infrastructure and natural resources, sectors in which Brazil is a global leader in innovation and competitive differentials. EBX investments are focused on MMX (iron-ore mining), MPX (energy), LLX (logistics), OGX (oil and gas), AUX (gold mining), CCX (coal mining) and OSX (oil services). MMX, OGX, MPX, CCX and LLX are listed on Brazil's Novo Mercado - at the Sao Paulo Stock Exchange (BOVESPA). The combined market capitalization of the EBX Group of companies exceeds US $20 billion.
V.P. Sharma to Prophecy's Advisory Board
Mr. Sharma has over 40 years of experience in the Energy Industry. His experience covers all aspects of power generation, including operations and maintenance, construction, planning, engineering, business development, safety, and project management.
Mr. Sharma joined China Light and Power Group ("CLP") in 1978 and, after holding various positions within CLP power stations, retired in 2011 as Director of Operations and Construction in charge of acquisition, operation and maintenance of existing generation assets, and construction of new generation projects across Australia, South East Asia and India. Mr. Sharma was instrumental in establishing CLP Group's presence in India and from 2002 to 2005, he managed CLP business in the country. He held the positions of CEO of CLP Power India, Managing Director of Gujarat Paguthan Energy Corporation (GPEC), Regional Business Manager, and Business Development Manager in CLP Power Asia. During this time, he established excellent contacts, and an impeccable personnel reputation with government officials, the investment community and consultants in India's rapidly growing power sector.
Mr. Maree Roos to Prophecy's Advisory Board
Maree Roos is an independent energy consultant with a deep understanding of the electricity industry, gained from involvement in numerous major projects across Africa, Singapore, Malaysia, Thailand and now Mongolia. Mr. Roos' expertise extends to energy market designs, pricing policy development, economic regulation, PPA structuring, costing, and risk management.
He obtained his Engineering degree from the University of Pretoria in 1985 and began his engineering career with Eskom in South Africa. During this time, he worked as a commissioning engineer and later as maintenance engineer at Eskom's largest coal-fired power station (3,840 MW indirect dry cooling).
In 1992, Mr. Roos obtained an MBA from Samford University in the US, subsequently returning to Eskom where he was responsible for maintenance and production planning. After holding several managerial and professional positions, he resigned in 2000 to start his own consultancy business, working with both public and private sector clients.
Ms. Lynia Lau as Prophecy's External Counsel
Ms. Lau is a Hong Kong based partner in the international law firm Clyde & Co. and the Asian Head of Energy & Resources for the firm. She specializes in acquisition, development, financing, operation, sales and governmental regulation of large-scale infrastructure projects including power plant, oil & gas, refinery, and LNG. Prior to joining Clyde & Co., she was with BP Amoco and Sinopec, acting as Senior Commercial Director. During this time, Ms. Lau accumulated over 10 years of industrial experience in M & A transactions, project development, project finance and government regulatory related matters. Her background in the power sector includes the following roles:
- Lead lawyer advising Shanghai Power Group Ltd (Shanghai A-share listing) in its proposed acquisition of a 4 x 150 MW IPP coal fired power project in Indonesia, which covered the drafting and negotiation of LOI, project framework agreement, due diligence, refinance framework agreement, sales and purchase agreements, and project finance related documentations.
- Lead lawyer advising Yudean Group Limited (listed in Shanghai Exchange), one of the largest PRC power groups, in its investment in a 2 x 1,000 MW IPP project in Indonesia. This will be the first 1,000 MW unit in Indonesia and one of the largest power projects in which a PRC entity has invested.
- Lead lawyer advising China Three Gorges Group (listed in Shanghai Exchange) in its first overseas investment of a 2,100 MW hydropower project in South America.
- Core team member advising Electricite de France and GEC Alstom on the first foreign-invested power BOT project in China, the 2 x 360 MW Laibin B BOT power project (FIGLEC, as project sponsors). The work extended from the early bidding stage to the winning and completion stage, including advising the JV on dealing with the Guangxi Government and other Chinese authorities in relation to the concession agreement, power purchase agreement, loan agreements, investor equity transfer agreements, and settlement agreement.
- Lead lawyer advising China General Technology (Group) Holding, Limited and its wholly owned subsidiary China National Machinery Import & Export Corporation in the first PRC sponsored integrated 3 x 150 MW coal fired power and coal mine BOT projects in Pakistan, covering all the project documents including MOU, leasing agreement, concession agreement, and the relevant project financing structure.
- Lead lawyer advising Datong Power International (listed in Hong Kong) in its overseas power project investments and the related feasibility studies including the hydro-power project investments in Laos.
John Lee, Chairman and CEO of Prophecy states: "Our expert team of staff and advisors has been working to implement the Chandgana mine mouth power project ("Chandgana") in Mongolia. Chandgana is the most mature and the only fully licensed 600 MW independent power project in Mongolia. Significant advances have been made in the areas of EPC, PPA, developer sponsorship, and project financing. A progress update will be provided shortly."
Prophecy also announces that Mr. Paul Venter and Mr. Paul McKenzie have resigned from the Board of Directors, effective immediately, to pursue other interests. Mr. McKenzie was the founder of Red Hill Energy, which merged with Prophecy Resource (now Prophecy Coal) in 2010. Mr. Venter was instrumental in the commissioning of the Ulaan Ovoo mine in 2011. The Company appreciates their dedication and service.
The Company also wishes to announce that it has granted options to acquire an aggregate of 5,000,000 common shares at a price of $0.18 per share for a period of five years to directors, officers, employees and consultants of the Company. The above grant is subject to regulatory approval, including the approval of the TSX Exchange.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in developing energy projects in Mongolia. Prophecy controls the Chandgana basin, one of the country's largest coal deposits and has received a permit from the Mongolian government to construct a 600 MW (Phase 1) mine-mouth power plant directly adjacent to the resource. Negotiations on financing, power purchase agreement and construction management are underway. Prophecy's second project, the Ulaan Ovoo thermal coal mine is fully-licensed and was commissioned in 2010.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Further information on Prophecy Coal can be found at www.prophecycoal.com.
ON BEHALF OF THE BOARD OF PROPHECY COAL CORP.
JOHN LEE, CEO/Chairman
Forward-Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements regarding future plans and objectives of the companies are forward-looking statements that involve various risks and uncertainties. Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, regulatory, market or business conditions, and other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Mineral exploration and development of mines is an inherently risky business and large infrastructure projects such as power plants require huge amounts of capital which may not be available to Prophecy on terms which will allow its shareholders to realize a reasonable return or on any terms at all. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of its business, investors should review filings that are available at www.sedar.com.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.