SALE OF LINC ENERGY’S EMERALD “TERESA” COAL EXPLORATION PERMITS • Linc Energy (ASX : LNC) has entered a Heads of Agreement with Xinwen Mining Group Ltd of China (“Xinwen”) for the sale of its Teresa coal exploration permits (EPC980 and EPC 1226) for AU$1.5 billion. • The parties have agreed to negotiate the formal Sale and Purchase contract and complete due diligence enquiries over the next month. • The proposed agreement will see the purchase price paid by Xinwen over 7 monthly tranches, commencing with a 1st payment of AU$150 million immediately after receipt of all necessary State and Federal government approvals. • Update on Linc Energy’s Chinchilla demonstration GTL facility. •
Linc Energy included in the latest Standard & Poors ASX 200 index. Linc Energy is please to announce the signing of a Heads of Agreement with the Xinwen Mining Group Ltd of China for the sale of its Emerald “Teresa” coal exploration permits (EPC980 and EPC1226) for an agreed purchase price of AU$1,500,000,000.
Both Linc Energy and Xinwen are now undertaking a 30 day due diligence period, during which time the formal Sale and Purchase Agreement will be finalised. The parties are aiming to execute the contract by 5 October 2008. The parties will immediately seek the necessary State and Federal government approvals for the transaction which are expected to take approximately 45 days.
LNC Price at posting:
$4.06 Sentiment: None Disclosure: Not Held
