Adani Enterprises has inked a pact to buy out Linc Energy's royalty rights from the Carmichael coal project for AUD 155 million, the Australian firm said on Thursday. Australian government last month had cleared the proposed Carmichael coal mine project of the Indian conglomerate Adani in the Galilee Basin in central Queensland.
‘Linc Energy is pleased to announce that it has entered into a binding option deed with Adani Group for the transfer of Linc Energy's benefits in and obligations under the Carmichael Royalty Deed to Adani. The option exercise consideration under the option deed is AUD 155 million,’ Linc Energy said in a statement.
Linc Energy said Adani will pay to it ‘AUD 155 million consideration in two instalments: AUD 90 million in cash within five days of the exercise of the option and the balance AUD 65 million in cash on or before 12 months from the date of the signing of the deed of the assignment and assumption.’ No immediate comment from Adani officials was received on the deal.
Linc said option is expected to be exercised ‘between 60 and 65 days from the date of this announcement.’ The company said it considers the transaction to be of benefit to its shareholders given the current market condition and the projected time to first production from the Carmichael mines.
‘Linc Energy is pleased to announce that it has entered into a binding option deed with Adani Group for the transfer of Linc Energy's benefits in and obligations under the Carmichael Royalty Deed to Adani. The option exercise consideration under the option deed is AUD 155 million,’ Linc Energy said in a statement.
Linc Energy said Adani will pay to it ‘AUD 155 million consideration in two instalments: AUD 90 million in cash within five days of the exercise of the option and the balance AUD 65 million in cash on or before 12 months from the date of the signing of the deed of the assignment and assumption.’ No immediate comment from Adani officials was received on the deal.
Linc said option is expected to be exercised ‘between 60 and 65 days from the date of this announcement.’ The company said it considers the transaction to be of benefit to its shareholders given the current market condition and the projected time to first production from the Carmichael mines.