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TomCo could make a bigger start to Sierra Leone palm oil venture

It told investors it may go straight to a 2 tonne per hour plant, rather than start with a 1tph starter operation.
Palm oil kernels to be processed
Talks are ongoing for project finance.

TomCo Energy Plc’s (LON:TOM) may commit to a bigger palm oil business, as it mulls scrapping the planned phasing of the new Sierra Leone venture.

The company told investors it may go straight to a 2 tonne per hour plant, rather than start with a 1tph starter operation.

In a stock market statement TomCo said talks with potential debt providers are continuing, and once funding has been secured it expects project start may take six to nine months.

It has start purchasing some long lead items from its current cash resources, including a boiler unit at a cost of US$27,500.

TomCo, which raised £400,000 in September, said on October 3 it had cash reserves of £375,000.

"I'm delighted to see the progress being made regarding our Palm Oil project as we consider moving straight to the larger scale production plant which will result in an increased return on our investment,” said Andrew Jones, TomCo chairman.

“We look forward to updating the market going forward."

TomCO also told investors that it is now talking to exports about a potential offtake arrangements.

It noted that drainage ditches were being dug at the Makarie site, and it expects to restart work to clear the site. The company has been sourcing materials and personnel locally so operations get can going as soon as financing is in.

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