RE: RE: news"I cannot understand the PCY logic to venture into a met coal mine on Vancouver Island."
Prophecy Resources is getting a make over to better attract Asian investors:
1. Spin off non-coal assets
2. Diversify coal holdings
In looking over Compliance Energy, the Raven Underground Coal Project is an advance stage exploration property and a near term producer. It is well situated in regards to existing infrastructure and transportation corridors. In regards to PCY, it offers the diversity of coking coal (metallurgical markets) and the diversity of coal holdings outside of Mongolia (Canada). Going forward, and after Chandgana, Raven looks to be an excellent pipeline property that can be brought into production via revenues from Ulaan Ovoo/Chandgana.
CEC.V owns 60% of Raven Coal and PCY (including all of CEC), just bought 8% of the project. The other two partners on the project (ie: 40%) is Itochu Corporation of Japan and LG International Corp of Korea. Two companies PCY will most likely do business with (if not already) via Mongolia. In addition, it should be noted that CEC owns a significant share interest in Copper Mountain Mining Corp. (tsx: CUM). That investment accounts for almost all of the current market cap of CEC (ie: something like 2.5M shares owned where CUM trades at $6+ per share). Hence, how much did PCY really pay to buy 8% of CEC? That 8% includes the shares CEC owns in CUM as well. That said, Mr. Lee's roots can not be denied (ie: Junior Investor/Finance). Going forward, he is building a portfolio of other companies owned that are publicly traded that will offer PCY shareholders another worthwhile attraction.
Portfolio:
Shares owned in NKL (soon to be spun out)
10% or so in Victory Nickel
8% or so in Compliance Energy