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Linc Energy sells its conventional coal business to United Mining Group
LINC Energy is selling all of its conventional coal assets to United Queensland Resources, which is part of United Mining Group.
Linc Energy will sell 100 per cent of the shares in its subsidiary, New Emerald Coal, for A$5 million (S$5.27 million) through a share sale agreement. New Emerald Coal will hold a number of Linc Energy's non-core coal assets, including the agreements to acquire the Blair Athol Coal Mine and its associated assets, the Teresa Project and its coal export capacity at the Port of Gladstone (the RG Tanna Coal Export Terminal).
New Emerald Coal will then go on to acquire Linc Energy's remaining non-core conventional coal mining assets in Queensland, Australia for A$1. These assets include the Pentland and Dalby development projects and Great Northern Leases, Biloela, Drummond, Wilkie, and Rathdowney greenfield exploration projects.
The existing revenue-sharing agreement between New Emerald Coal and Linc Energy will remain in place post-completion. Under the agreement, Linc Energy receives an indexed US$1 per product tonne of coal sold from the Teresa Project and Pentland Project, and an indexed US$0.50 per product tonne of coal sold from the Blair Athol Project, if the Blair Athol acquisition completes.