Prophecy Receives Interest on Ulaan Ovoo Project and Provides Update on Progress in Bolivia
Prophecy Receives Interest on Ulaan Ovoo Project and
Provides Update on Progress in Bolivia
Vancouver, British Columbia, March 20, 2018 – Prophecy Development Corp.
(“Prophecy” or the “Company”) ( TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to
provide the following updates on its Pulacayo and Paca silver -lead-zinc projects in Bolivia, and
Ulaan Ovoo and Chandgana Projects in Mongolia.
Bolivia:
A delegation led by the Bolivia n Minister of Mining and Metallurgy attended the Prospectors &
Developers Association of Canada (PDAC) mining conference in Toronto earlier this month. The
Minister discussed advances in foreign investment, new mining projects, and productive
infrastructure for mining development among other topics. The Minister encouraged and invited
foreign investment which will be protected under the mining production contract legal framework
which provides investors with undivided working interests in Bolivia’s mining projects. Prophecy’s
management met with the Minister while in Toronto, on March 6, 2018, whereby he re-iterated his
support for Prophecy’s endeavors in Bolivia.
The Company’s Bolivian subsidiary, ASC Bolivia LDC Sucursal Bolivia, has so far, invested
approximately US$28 million at Pulacayo and already acquired the necessary environmental and
social licenses to mine at Pulacayo. The Company is working with the Bolivian Ministry of Mining
and Corporacion Minera De Bolivia (COMIBOL) to obtain authorization to allow Prophecy to mine
at Pulacayo while transitioning from the current joint venture contract to a mining production
contract.
Mongolia:
Ulaan Ovoo Thermal Coal Mining Project
Prophecy has recently received unsolicited interest in leasing its Ulaan Ovoo coal project, which
is located in northern Mongolia, 17km from the Zeltura border to Russia by dirt road, and 120km
by road from Mongolia’s Sukhbaatar railway station (which connects to the Trans-Siberian railway
network). The mine has so far, received over $50 million in investment and been on standby
since 2014.
During 2012 to 2015, Prophecy successfully delivered approximately 500,000 tonnes of Ulaan
Ovoo coal to 28 Mongolian and Russian customers, with a track record of timely delivery and
meeting or exceeding the required coal quality specifications.
Ulaan Ovoo coal (5,000 kcal/kg GCV, < 1% Sulphur, < 8% Ash, < 3% rock) is well -suited for
power plant, cement plants, and heat boiler applications.
While parties continue discussion and due diligence, there is no assurance that a ny potential
transaction will be concluded.
Chandgana Mine Mouth Power Plant Project
Due to continued political uncertainty, the Chandgana power plant project, with over $14 million
in investment to date, has advanced at a slower pace than anticipated. Accordingly, the Company
has determined to write-off its Chandgana investment in its 2017 year-end financial statements
while continuing to explore strategic alternatives for the Company’s Chandgana Khavtgai and
Chandgana Tal coal licenses in order to maximize shareholder value.
About Prophecy
Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock
Exchange. The Company aims to provide exposure and leverage to rising vanadium prices by
defining and adding attributable vanadium resources in the ground in politically safe jurisdictions.
Further information on Prophecy can be found at www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
“JOHN LEE”
Executive Chairman
For more information about Prophecy, please contact Investor Relations:
+1.888.513.6286
www.prophecydev.com
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including statements which may contain words
such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions,
and statements related to matters which are not historical facts, are forward -looking information
within the meaning of applicable securities laws. Such forward-looking statements, which reflect
management’s expectations regarding Prophecy’s future growth, results of operations,
performance, business prospects and opportunities, are based o n certain factors and
assumptions and involve known and unknown risks and uncertainties which may cause the actual
results, performance, or achievements to be materially different from future results, performance,
or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on
the Prophecy’s forward-looking statements. Prophecy believes that the expectations reflected in
the forward-looking statements contained in this news release and the documents incorporated
by reference herein are reasonable, but no assurance can be given that these expectations will
prove to be correct. In addition, although Prophecy has attempted to identify important factors
that co uld cause actual actions, events or results to differ materially from those described in
forward looking statements, there may be other factors that cause actions, events or results not
to be as anticipated, estimated or intended. Prophecy undertakes no obligation to release publicly
any future revisions to forward -looking statements to reflect events or circumstances after the
date of this news or to reflect the occurrence of unanticipated events, except as expressly required
by law.