RE: RE: RE: RE: RE: 2012 will be a new highAlthough posted previously and dates back to June 24, comments by Frontier Securities helps shed some insight as to what can be expected in regards to Chandgana (ie: now that we have the PPP):
"· flagship operation - the Chandgana Power Plant: submitted a formal request and feasibility study to the Ministry of Natural Resources and Energy of Mongolia to build the Chandgana Power Plant and obtained from the Mongolian government a full mining license for its 141M tonne coal deposit on its Chandgana Tal coal property in Mongolia. The Company expects to receive approval for the power plant permit late in the third quarter and Frontier Securities views that the approval for the Power Plant would be significant stock price catalyst.The company is close to engaging an investment bank to help the company seek project financing to build the Chandgana Power Plant in Mongolia.Some of these banks have visited the site in Mongolia. Raising the project financing for this power plant is about a nine to 12 month process and will not be finalized until Prophecy receives the construction license and a power purchasing agreement (PPA) from the Mongolian government. Total capex for the plant is about USD 1bn and it will be split into 30% equity and 70% debt. This capital will be raised in two phases with the first phase being about USD 400m to USD 500m. Prophecy intends to build four blocks that will generate 150 megawatts (MW) each of electricity and it will build two blocks in the first phase and the other two in the second phase. The company is also looking at the possibility of listing in Hong Kong viewed as founded by Frontier Securities, as in our opinion, the company is significantly undervalued on the Toronto Stock Exchange, Prophecy controls over 1.4bn tonnes of thermal coal in Mongolia but only has a market cap of CAD 125m (USD 129.1m). In comparison, Singapore-listed Straits Asia Resources controls only 983m tonnes of coal in Indonesia but has a market cap of SGD 3.5bn (USD 2.8bn). However, initial phase of capital requirements of Prophecy is being fulfilled on the Toronto Stock Exchange, the center for resource investing. In the future, we view that Hong Kong Stock Exchange would be ideal platform for Prophecy to raise funds for its energy projects such as the power plant. Frontier Securities is aware of potential cornerstone investors for a Prophecy’s listing in Hong Kong."
source: greenenergyinvestors.com/index.php?showtopic=15006