The MPC grants Prophecy an exclusive right to develop and mine at the Pulacayo and nearby Paca concessions for up to 30 years; a regime comparable to mining licences in Canada or the USA.
"We welcome the company Prophecy which, with Canadian investment, joins today the hard work we do as a government in developing the mining sector," said mining and metallurgy minister César Navarro Miranda.
"The signing of the MPC will have a positive economic and social impact at the national and regional levels, and directly on the municipality of Uyuni. Investments such as Prophecy's will always be welcomed as they fit within the framework of the principle declared by the president of the Plurinational State of Bolivia: We want partners, not bosses."
Pulacayo is in a good silver-mining address, just more than 100km from Sumitomo Corporation's San Cristobal, 185km southwest of Coeur Mining's San Bartolome, and 139km north of Pan American Silver's San Vicente mine.
A 2017 updated mineral resource estimate shows Pulacayo hosts an indicated resource of 30.4 million ounces silver at an average grade of 455 grams per tonne with another 6.3Moz inferred, while Paca holds a further 2.5Moz at 256g/t in the inferred category.
Prophecy founder and executive chairman John Lee said the company would now focus on resource expansion and fast track the "top-tier silver project to production".
Pulacayo has access to water, power and a railway line to the Antofagasta seaport in neighbouring Chile.
Only 30% of the 3km-long Pulacayo Tajo vein system has been drilled, according to historical and company records.
The company has recently completed five diamond drill holes at Paca, for which it expects to report assay results next month.
The news sent the company's Toronto-quoted equity 25% or C10c higher to 49c on Monday, which gives it a market capitalisation of $52.8 million. The stock has gained more than 82% since the New Year.
