Can someone please explain? I don't understand the nature of the Waterton Global Value, L.P., $10 million Loan for the Tethys Coal Properties.
I understand that Prophesy Coal (PCY) doesn't own or have possession of the Tethys Coal Properties. As a result, why is PCY responsible for paying Waterton Global the $10 million, plus interest and presently being in the position of having to give up some or all of its interests in Prophecy Platinum (NKL).
If PCY never received the Tethys Coal Properties as no money was transferred to PCY to pay for them, how can PCY be responsible for paying back a loan plus interst?
If Tethys received the $10 million without a property transfer wouldn't they be responsible to return the $10 million with stipulated interest payments?
If I'm incorrect in my understanding the situation, can someone direct me to where I may obtain correct info, or give brief explanation of why.
My feeling is that the Mongolian Government should stand behind PCY in the above matter with additional help by the World Bank and Canada .