Australian innovative energy company Linc Energy Ltd. announced late Thursday that it has agreed to sell its Teresa coal exploration permits to China-based Xinwen Mining Group for A$1.5 billion. The company had revealed in July that it intends to sell the Teresa coal deposits. Following the announcement, the Linc Energy stock is climbing nearly 41% on the Australian Securities Exchange.

Linc Energy is an innovative, forward thinking energy company and Australia’s leader in clean coal technology. It aims to become a major player in the production of higher quality and ultra-clean liquid fuels through the unique combination of Underground Coal Gasification clean coal technology and Coal To Liquids technology.

Xinwen Mining produces over 35 million tons of coal year and have over 30 billion tons of coal reserves.

According to the sale agreement for the EPC 980 and EPC 1226 permits, the price of A$1.5 billion would paid over seven monthly installments starting with an initial payment of 10% or $150 million on receipt of all state and federal government approvals, which is expected to take 45 days. The payments are expected to be completed by June 2009.

However, both the companies have agreed to further negotiate the deal and conduct due diligence over the next month. Both parties are now undertaking a 30 day due diligence period and are aiming to execute the sale by October 5.

The company also announced hereby that it would be included into the Standard & Poor ASX 200 index starting September 19, 2008.

LNCYF.PK closed Thursday’s regular trading session at $2.70.

In Friday’s regular trading session on the Australian Securities Exchange, LNC.AX is trading at A$4.30, up A$1.25 or 40.98% on a volume of 4.1 million shares

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