The assets under the deal are managed by Linc’s subsidiary New Emerald Coal (NEC).
The transaction includes agreements to buy the Blair Athol coal mine and the Teresa project and its coal export capacity at the Port of Gladstone, Pentland and Dalby development projects and Great Northern Leases, Biloela, Drummond, Wilkie, and Rathdowney greenfield exploration projects.
NEC plans to conclude the acquisition of Blair Athol mine in the coming weeks.
As part of a revenue sharing agreement, Linc will receive $1 per ton of coal sold from Teresa and Pentland projects and $0.50 per ton of coal sold from the Blair Athol project, subject to closing of the acquisition.
With this transaction, Linc Energy will be able to achieve savings of A$20m a year in administration and existing liabilities costs as well as allow it to focus on underground coal gasification, SAPEX Shale and conventional oil and gas businesses.
The acquisition is part of United Mining’s strategy to build an Australian coal portfolio.
United Mining managing director Gary Williams said: "United is continuing with its aggressive growth plans and is looking for additional synergistic acquisitions over the coming months."
The transaction is subject to certain closing conditions and regulatory approvals.
