Prophecy Coal Corp (CVE:PCY) announced Monday it signed several coal sales agreements with both Russian and Mongolian buyers, totaling 92,000 tonnes.
This coal is from the company's wholly owned Ulaan Ovoo coal deposit, located 430 kilometres from the Mongolian capital city of Ulaanbataar, and about 17 kilometres from the Russian border.
The mine has a measured and indicated resource estimate of approximately 209 million tonnes of low-ash, low-sulphur coal.
The first agreement, Energy LLC, is a company registered in the Buryatia Republic of the Russian Federation, which has agreed to purchase 22,000 tonnes of coal to be consumed in local Buryat power stations and boilers.
Over the next two months, the coal that Prophecy has stockpiled at the Sukhbataar rail station will be loaded and transported across the Mongolia-Russia border into Russia, via the city of Naushki.
Other coal purchasers announced today include two local Mongolia companies and two Mongolian government power plants. These Mongolian groups have agreed to buy up a total minimum of 70,000 tonnes over this year.
Prophecy said it expects to deplete its coal stockpile, and operate continually to meet these commitments.
"Ulaan Ovoo's clean coal with its low ash (8%) and sulphur (0.5%) is highly desired," said CEO John Lee.
"We are making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets."
Prophecy’s stock on the TSX-Venture Exchange rose 8.7% as of 10:10 am EDT, to trade at $0.75 per share.