Prophecy Coal Corp has entered into a binding letter agreement with Apogee Silver to acquire the Pulacayo-Paca Silver-Lead-Zinc Project in Bolivia.
Under the agreement, Prophecy will acquire Apogee’s subsidiaries Apogee Minerals Bolivia SA and ASC Bolivia LDC, which in turn holds ASC Bolivia LDC Sucursal Bolivia, by paying Apogee $250,000 in cash and issuing Apogee 60 million Prophecy Class B convertible, non-voting shares. Prophecy has agreed to assume all liabilities of the Apogee subsidiaries.
The proposed transaction would provide Apogee shareholders with liquidity and an opportunity to team up with Prophecy’s mining production experience in a challenging investment climate. Apogee shareholders would also be able to participate in the potentially significant upside of both the Pulacayo-Paca and Prophecy’s coal and energy projects.
The Pulacayo-Paca property is 18km east of Uyuni city in southwest Bolivia. It is 460km south-southeast of the nation's capital of La Paz and 150km southwest of the city of Potosi. An 18km paved road connects Pulacayo-Paca to Uyuni, which connects to the port of Antofagasta by 612km of railroad.
The property comprises about 22,850 hectares of contiguous mining concessions centred on the historic Pulacayo mine and town site with access to power and water.
Between 2006 and 2012, a total of 69,739 metres of diamond drilling was conducted by Apogee, whereby 226 surface drill-hole and 42 underground drill-hole results support mineral resource and reserve estimates pertinent to the independent feasibility study dated January 17, 2013.
Pulacayo’s trial mining and toll milling programs started in November 2011 and continued for 19 months.