But still just a tentative date on Xinwen settling the deal on the sale of Teresa.
"Linc Energy is aiming to have the formal sale and purchase agreement for the Emerald (Teresa) Coal Tenements executed before Christmas 2008, with the first payment of the $1.5 billion settlement to be received immediately following Australian government approvals."
However this announcement is making the deal sound pretty strong to me now.
Firstly it points out that they have substantially expanded the resource now, such that Xinwen would be getting their coal at $1.75/tonne, whereas when memoranda and so forth were written Xinwen was indicated to pay $3.19/tonne.
On top of that, the exchange rate means that the Chinese will be paying 30% less to exchange into $1.5B AUD than a few months ago. So more coal, and a cheaper price than they agreed to. How good is that?
Then, brightening the picture of the extra inferred tonnes is that Linc has identified a huge open cut minable body of 200m tonnes within the resource.
Finally Linc says that it has received many other expressions of interest from groups wanting to purchase at Emerald.
This sounds a lot more like its going to come off! Xinwen has again confirmed that it wants to do the deal and says,"We are working very closely with our regulators in order to complete the acquisition.”
It sounds gooood . . .
LNC Price at posting:
$2.88 Sentiment: Hold Disclosure: Held
