TomCo Energy PLC (AIM:TOM, OTC:TMCGF) has raised £300,000 of new funds through an equity raise process, with the proceeds providing working capital to progress its project in Utah.
The company, in a statement, said it had raised £200,000 through a share placing and £100,000 through a separate subscription for shares – with all new shares priced at 0.045p each.
It comes as the company’s subsidiary Greenfield Energy continues to negotiate for an extension to its acquisition option for the Tar Sands Holdings II LLC site, whilst also working towards larger financing arrangements to exercise that option.
Greenfield’s option to acquire the 90% interest in the site that it doesn’t already own for £17.5 million expired at the end of December and the company has been in talks in recent weeks over the option arrangement.
“The company remains in discussions with the counterparty to the option with a view to seeking a further extension to the exercise period in respect of such option or agreeing a suitable alternative arrangement,” the company noted in a statement.
“There can be no certainty that the option will be extended or an alternative arrangement agreed, or that the required funding can be secured to complete the potential acquisition of the remaining 90% of the Membership Interests. A further announcement will be made in due course.”
Today’s working capital raise was arranged by Novum Securities.