Prophecy secures $10 million coal loan

The debt facility, arranged with Waterton Global Value, L.P., enables the company to complete the purchase of coal licenses in Mongolia.

Prophecy Coal Corp. (TSX: T.PCY, Stock Forum) says it has secured a $10 million loan that will enable it to complete the purchase of the Tugalgatai coal licenses in Mongolia. These licenses are expected to significantly increase Prophecy’s coal resources.

The Vancouver company said in a press release the loan has a one-year term and bears interest at 14% per annum.

Trading at 19.5 cents on Monday, Prophecy Coal has a market cap of $43.6 million, based on 223.5 million shares outstanding. The 52-week range is $1 and 18.5 cents.