Prophecy Resource Corp said Friday it will raise roughly $30 million through an equity offering for its thermal coal projects in Mongolia. The company has agreed to issue 32.29 million common shares at a price of C$0.85 per share.
The new funds will be used to finance work on the company’s existing properties in Mongolia, as well as to repay an outstanding credit facility, Prophecy said.
Jacob Securities and Renaissance Capital are acting as joint lead managers for the deal, which is expected to complete around December 17, subject to regulatory approvals.
Prophecy develops energy, nickel and platinum group metals projects. It controls over 1.4 billion tons of open-pittable thermal coal in Mongolia. In Canada, the company owns the Wellgreen PGM Project in Yukon, the Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel.