us coal aquisition, page-2

Porker,

Thanks that - it was good to get a more considered post on the subject. We agree its a good deal, but are interpreting it differently.

I do not see it as a US$5m cash outlay. The announcement indicates that the transaction "follows the letter of intent" and that it comprises the first phase of the proposed GasTech purchase (ie 100% for US$50m).

That is that LNC will pay for the 7-8bt target area by taking a 10% stake in GasTech in 60 days, financed via LNC shares issued at $4.03.

As I said on the other thread, the most significant aspect of the announcement IMO is that it is a valuation guide to LNC based on fundamentals rather than trading activity, phase of the stock cycle or market rumours etc).

The remaining 10bt target (probably the most valuable) is partly or fully subject to a pre-emptive rights dispute that has yet to be resolved.

Thats my understanding FWIW. Cheers