RE: RE: RE: Executionhere's a couple of diddies from the approved DEIA that I thought were interesting :
“The DEIA approval is a major milestone clearing the way for full scale permitting in early 2011. Prophecy is committed to investing heavily in Mongolia and looks forward to working with all major Mongolian stakeholders to ensure Chandgana’s smooth rollout to providing affordable and reliable electricity to sustain the country’s rapid growth.”
"Prophecy has received expressions of interest from several local and international entities. Prophecy is evaluating proposals and offers on power off take, design and constructions of plant and transmission lines, and investment."
The first part about working with Mongolian shareholders is key....
Lee is smart by getting them involved at the beginning....
what's good for PCY is good for Mongolian shareholders (i.e. government politicians)....
I don't think raising the cash will be a problem...
PCY has indicated that a subsidiary company will be formed to undertake the financing, which will most likely be only a part of the total financing, as most likely a Mongolian consortium will be PCY's partner....
if the power plant is approved, the offsetting balance to reward Mongolians will be a partnership with the Mongolian govt, or entities of the govt, which will shoulder the burden to getting the plant up and running...
what I'm guessing is that PCY Coal sells coal to it subsidiary/Mongolian consortium for cheap prices...
PCY Coal benefits as its subsidiary benefits...
I'm also guessing the price per KWH will be fairly cheap...
after all, the Mongolians currently purchase their power at 7.2 cents/KWH, so PCY's subsidiary will have to charge less than that....maybe 6 cents?....
all guesswork, but who knows....
let's just get the power plant approved first....