Prophecy Resource Corp. announced that it has entered into a Memorandum of Understanding (MOU) with JUST Group of Mongolia pertaining to a minimum of 1.2 million tonnes of coal sales from Prophecy's Ulaan Ovoo mine.

The minimum sales price at Nauski, the northern Mongolian-Russian border crossing, is set at US$35 per tonne of coal, subject to quarterly market adjustment. As total consideration for its services, JUST will receive a 3% commission of the final coal sales price. Both Prophecy and JUST will also cooperate to rail Ulaan Ovoo coal to Russian east seaports in the soonest time frame possible, where coal of Ulaan Ovoo’s quality is trading at a 2 year high of $84/tonne.

Pursuant to the MOU, Prophecy has also agreed to purchase JUST Oil LLC Diesel Products at prevailing market prices. Both parties have agreed to finalize all details in a binding Co-operation Agreement within 30 days of the MOU.

John Lee, CEO of Prophecy states: "Since Ulaan Ovoo's commissioning in October, Prophecy has received numerous expressions of coal off take interest from both local Russian power plants and far east clients at Russian east seaports. Our alliance with JUST ensures seamless coal delivery to end customers. Again I'd also like to thank the Mineral Resources Authority of Mongolia and the Ministry of Mineral Resources and Energy for expediting Ulaan Ovoo permitting, which allows Prophecy to serve local and regional thermal plants in this harsh winter in times of nee

Batkhuu, Chairman of JUST states: "Prophecy is a trustworthy, energetic company. The Ulaan Ovoo and Chandgana projects have a lot of potential and the JUST group looks forward to a solid partnership with Prophecy to develop those projects to serve and power Mongolia as well as other parts of Asia."

Bookmark this page!