Whitehaven recovers after hoax release

Shares in Whitehaven Coal recovered quickly after a press release claiming its financing had been withdrawn was exposed as a hoax.

Earlier, shares in the company plunged 6 per cent after several media outlets reported that ANZ Bank had cancelled a $1.2 billion loan facility to Whitehaven to fund its Maules Creek coal project.

However the reports were based on a hoax media release believed to have been distributed by anti-coal mining activists.

Whitehaven shares were placed in a trading halt until the company could respond.

The company reported it had been made aware of a hoax media release suggesting ANZ had withdrawn its financing.

"There is no substance to the hoax media release," the company said.

"ANZ has confirmed the release is a hoax."

Whitehaven shares closed down two cents at $3.52 after initially plunging to $3.21 immediately after the false reports began circulating.

In a note to clients, broker Patersons reiterated its buy recommendation on the company, saying the hoax had presented "a good buying opportunity".