Linc: On Teresa Coal Asset and Cornerstone Investor

Linc Energy (LNC) received a speeding ticket from the Australian Securities Exchange (ASX) as its shares soared 25 per cent on Friday amid speculations circulated that the company has found a buyer for its Teresa coal settlement in Queensland. However, the Brisbane-based company denies the speculations and says that it has no explanation for the increase in its share price.

"The company advises that, with regard to the sale of its coal tenements, although it is pursuing a number of divestment opportunities it has, as yet, not entered into any binding arrangements with any party," said the company in a statement.

While it denies the sale of its Teresa coal asset, Linc admits that it is holding talks with a potential cornerstone investor, with which it may pursue coal gasification opportunities in China.

"Even though those discussions are very well progressed, no binding agreement has yet been reached," Linc said. It added that the company will make announcements to keep the market updated for further developments regarding the matter.