shares up on back of clean-coal deal

Shares up on back of clean-coal deal
http://business.theage.com.au/business/shares-up-on-back-of-cleancoal-deal-20090629-d2m5.html

Mathew Murphy
June 30, 2009 .
SHARES in Melbourne-based coal drying company Environmental Clean Technologies have soared more than 600 per cent this month following an increase in its contracted sales.

The sharemarket minnow will now complete a detailed feasibility study of Coldry technology, which claims to change the composition of brown coal into a similar version of black coal while reducing greenhouse gas emissions by 50 per cent.

ECT chief executive Kos Galtos has just returned from Vietnam where he signed a deal with Thang Long Investment (TinCom) to establish a special-purpose vehicle to invest funds. TinCom has increased its initial commitment to receive 20 million tonnes of the Coldry pellets a year for 30 years and will now receive 100 million tonnes a year for 50 years.

First, however, ECT has to get access to the coal. BusinessDay believes ECT has received a letter of intent from Loy Yang Power to establish a memorandum of understanding on coal supply.

The company has also completed the acquisition of all units in the Coldry Trust and shares in Maddingley Coldry for $1 million in cash, 55 million shares and 110 million options.

The feasibility study is expected to cost $3.5 million and be completed within four months of receiving funding.

At the start of June, shares were at 1.5¢. In yesterday's trade, the stock hit a high of 11.5¢ before finishing at 7.4¢.