TomCo Energy PLC (AIM:TOM, OTC:TMCGF) told investors it has agreed an unsecured committed convertible loan facility of up to £1mln and an associated subscription and put option.
It is being provided by investors introduced by Novum Securities, TomCo’s broker, it noted in a statement.
The company said that the loan facility is intended to further bridge the company's general working capital requirements as it continues to finalise due diligence and documentation for a funding package to enable it to execute its development plans in Utah.
Those plans include the completion of a transaction to acquire all of the remaining equity in the Greenfield Energy LLC and the Tar Sands Holdings II LLC (TSHII) site.
The site comprises 760 acres of land and a large mining permit where Greenfield plans to build two oil sands processing plants and associated infrastructure on the TSHII site, and drilling a series of in-situ oil recovery wells.
Greenfield, a TomCo subsidiary, presently owns a 10% interest in the site and has an option agreement to acquire the other 90% by 5 April 2023 (after the deadline was extended earlier this month).