TomCo Energy PLC (AIM:TOM, OTC:TMCGF) said it has raised just under £1mln of proceeds through a share placing, to support operations at its site in Utah.
The company is to issue around 264mln new shares to investors, priced at 0.35p each, with the new equity representing around 11.7% of the enlarged share capital.
Tomco said its Greenfield subsidiary will use the funds to continue its ongoing work whilst talks proceed over a separate non-equity funding package for the project – including the exercise of Greenfield’s option to acquire the remainder of the Tar Sands Holdings II LLC (SSHII) site, by paying US$16.25mln by 31 December 2022.
It also noted that one potential outcome could see the company sell a majority stake in its Greenfield subsidiary for an upfront cash payment, a ‘carry’ on the future work at SSHII, and commitments to continue funding the project.
“It is the intention of TomCo that any funding package provided to Greenfield would enable the construction of two oil sands separation plants capable of processing at least 6,000 tonnes per day of oil sands, along with at least 14 in-situ oil recovery wells,” Tomco said in a statement.
“Any such proposed disposal would likely constitute a fundamental disposal pursuant to the provisions of Rule 15 of the AIM Rules for companies," it noted
Any deal is likely to require shareholder approval, the company added.
Tomco also noted that the deadline for its outstanding US$1mln loan to Valkor Oil & Gas has again been extended, with the payment now coming due alongside the completion of a funding transaction for Greenfield.