Prophecy Announces $1.5 Million Credit Facility and Expiry of Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 27, 2015) - Prophecy Development Corp. ("Prophecy" or the "Company") (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces that it has entered into a revolving credit facility agreement (the "Credit Facility") with Linx Partners Ltd., a company controlled by a director of Prophecy. A maximum principal amount of CAD$1.5 million is available to the Company under the Credit Facility, which will be in place for one year, with an option to extend for any number of subsequent one-year terms. The Credit Facility will fund Prophecy's ongoing business operations, bears an interest rate of 1.5% per month and is secured by a promissory note and general security agreement.
The Company also announces that the private placement with TBF Capital Management Group (HK) Limited ("TBF") previously announced on December 8, 2014 and February 25, 2015 has not closed by the deadline stipulated by the Toronto Stock Exchange. TBF has to date, failed to remit their subscription proceeds under a binding contract despite its repeated assurances to the Company that they would do so.
Prophecy confirms that TBF, TBF Capital Management Group (Shanghai) Corp. and China State Fund currently have no stake in Prophecy's Ulaan Ovoo Coal Project or Chandgana Power Plant Project in Mongolia.
About Prophecy
Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock Exchange that is engaged in developing mining and energy projects in Mongolia, Bolivia and Canada. Further information on Prophecy can be found at www.prophecydev.com.
ON BEHALF OF THE BOARD
JOHN LEE, Executive Chairman
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 on 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 could 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.
Contact
Prophecy Development Corp.
Investor Relations:
Bekzod Kasimov
+1.604.563.0699 or +1.888.513.6286
investorrelations@prophecydev.com
www.prophecydev.com
