Blackham Resources shares skyrocket
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AAP
2009-11-30
Shares in Blackham Resources Ltd skyrocketed on Monday after it signed a non-binding deal with Synfuels China Co Ltd to establish a coal-to-liquids Fischer-Tropsch diesel facility in the Esperance region of Western Australia.
Blackham shares closed 13 cents, or 54.17 per cent, higher at 37 cents.
The Fischer-Tropsch process involves converting a carbon monoxide and hydrogen mixture, which is extracted from biomass, coal or methane, to liquid fuels.
The parties have agreed to conduct studies in coming months to apply Synfuels China technology to the development of Blackham's Scaddan project, which is a joint venture with Wesfarmers Premier Coal Ltd.
It is expected a formal agreement, subject to positive studies, will be executed by the second quarter of 2010.
Blackham said it intends to dry lignite at Scadden prior to gasification.
"The innovative drying technology developed by Synfuels China is of significant interest," Blackham chairman Brett Smith said in a statement.
