Brisbane, Dec 24, 2008 AEST (ABN Newswire) - Linc Energy Ltd (ASX:LNC)(PINK:LNCYF) announced today that negotiations have progressed particularly well over the past three to four week and it remains confident that it will complete the sale of its Emerald (Teresa) coal tenements for AU$1.5 billion. However in the light of a number of issues, including complications associated with the global financial crisis and the upcoming Christmas and Chinese New Year break, it appears unlikely Linc Energy will be able to complete the exchange of documents and receive payment of the A$150 million deposit by end of December 2008. Subsequently, it is estimated that the process of completion of the sale will take another 6 to 8 weeks.
Mr Justyn Peters, Linc Energy's Business Development Manager said "l have personally been negotiating with the Chinese groups on behalf of Linc Energy and I can assure investors that we are extremely close to finalising this agreement. I think the size of this deal and the fact that we had a significant financial market meltdown within weeks of announcing the deal, has cost everyone at least a couple of months traction in negotiations. To have progressed the deal this far in just over three months reflects the commitment of our Chinese counterparts."
ln addition to the current negotiations with Chinese groups, Linc Energy has continued to receive expressions of interest from other non-Chinese groups who are also indicating strong interest in the Emerald (Teresa) coal tenements.
Mr Peter Bond, Linc Energy's Chief Executive Officer said, "I know in these days of heightened awareness about the volatility of the market, everyone becomes very focused on one event like the sale of the Emerald (Teresa) coal asset, but the reality is this is a very high quality asset with numerous parties wishing to purchase it. Following discussions with various parties over the last month, I am more confident now of a successful Emerald coal sale than I have ever been."
Linc Energy would also like to announce that it has secured AU$36 million financing by way of fully underwritten Convertible Notes arranged by BBY Limited. The notes will bear interest at the rate of 10% per annum and will have a term of 3 years from the date of issue unless earlier converted or repaid. The A$36 million financing ensures Linc Energy can comfortably budget into mid-2010.
Contact
Mr Peter Bond
Chief Executive Officer
Phone: +61 7 3229 0800
E-mail: pab@lincenergy.com.au
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