Энэ 7 хоногт
Red Hill and Prophecy to start coal production this year
Red Hill Energy Inc. and Prophecy Resource Corp. have provided an update on recent activities underway to expedite production from Red Hill’s 100% owned Ulaan Ovoo thermal coal project in northern Mongolia.
Red Hill Energy Inc. and Prophecy Resource Corp. have provided an update on recent activities underway to expedite production from Red Hill’s 100% owned Ulaan Ovoo thermal coal project in northern Mongolia.
The preparations are being conducted by Red Hill with the full support of Prophecy, Red Hill’s proposed merger partner. Red Hill Energy has engaged Wardrop Engineering Inc., a leading international mining engineering company, to conduct a Preliminary Economic Assessment (“PEA”) on the 208 million tons Ulaan Ovoo coal project (174.5 Measured, 35.9 Indicated and 34.3 Inferred). The new study will incorporate project economics based on current substantial increases in international coal prices since the project’s Pre-feasibility Study was completed over 10 months ago. The PEA will also emphasize an immediate production scenario that will utilize truck transport on existing roads to the central railroad thereby deferring the construction of a 120km spur line. Wardrop personnel are currently in Mongolia undertaking the PEA.
Red Hill Energy is in discussions with international mining contractors, including those with extensive experience operating inside Mongolia. Red Hill and Prophecy intend to finalize mine plans and a turn-key contract to bring the Project into production this year.
Red Hill has also entered into a royalty purchase agreement with Dunview Services Limited, a private British Virgin Islands company, whereby Red Hill will acquire a 2% net smelter returns royalty held by Dunview over the mining licenses forming part of the Ulaan Ovoo
project for the payment of USUSD130,000 in cash and 2,000,000 Class A Shares. The completion of the royalty purchase is conditional upon the completion of the merger with Prophecy.