TomCo Energy Plc (LON:TOM) has told investors it is continuing to review debt and equity financing options for its proposed palm oil venture in Africa.
Last month the transitioning group announced it had completed due diligence for the project in the Makeni oil palm belt, in Sierra Leone, and it was finalising the formation of its palm oil division.
A report by Astratec Africa outlined plans for a 1 tonne per hour plant, which could be scaled up to 2tph. The necessary equipment, to be sourced from India, was included in what TomCo described as a simple and robust design.
TomCo this morning noted that it expects the palm oil project and fresh fruit bunches processing plant to cost around US$500,000 and said it would also need to raise additional working capital.
“Any material delay in funding could lead to a delay in the start-up of the project,” it added.
TomCo also highlighted that its cost reduction programme has now seen outgoings reduce by £300,000 per annum, compared with eighteen months ago, and at the end of June it had £165,000 of cash.