Thursday, May 6, 2010

HENRY RESOURCE TAX NOT AFFECTING LINC ENERGY’S COAL ASSET SALE NEGOTIATIONS

Linc Energy (ASX:LNC) (OTCQX:LNCGY) announced today that the ‘Henry Resource Tax Proposal’ has not hindered its current ongoing coal asset sale discussions with most parties, stating the coal purchase is more about securing supply.

Recent valuations of the Teresa (Emerald) coal tenement area have in fact increased, based on higher coal prices and higher demand for coal and coal property in general. Linc Energy is working through a new valuation process which will be the basis for establishing a sale price guideline with current prospective buyers. The Company expects a detailed update on the coal asset sale proceedings and the valuation process over the coming six weeks. 

UBS (Sydney), who is assisting Linc Energy in the coal sales process, is witnessing a general increase in interest from existing and new potential purchasers.

Linc Energy’s CEO, Mr Peter Bond said today, "The coal sale process has heated up significantly over the past 90 days. We are seeing demand from new potential buyers and due diligence discussions progressing to levels of detail we simply have not seen before. Linc Energy has had a number of discussions with the potential buyers of the coal assets and they have made it clear that the sales program will continue as planned."

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