Citing investor demand, Prophecy increased the size of the placement to 22 million common shares at 45c per share.
The miner was initially looking to raise $9 million from selling 20 million shares.
Company insiders invested $508,500 and together with existing shareholders subscribed for a majority of the financing.
Proceeds of the placement will be applied to technical work at the Chandgana, operations at the Ulaan Ovoo mine and general corporate purposes.
The company said it granted options to acquire an aggregate of 3 million common shares at a price of $0.485 per share for a period of five years to directors, officers, consultants and employees of Prophecy.
The deal is subject to regulatory approval, including the approval of the TSX.
Prophecy Coal has more than 1.4 billion tons of surface mineable thermal coal resources on two coal properties in Mongolia.
Ulaan Ovoo is in production while the Chandgana mine-mouth power plant has been permitted.