19th Jun 2020 10:55
(Alliance News) - TomCo Energy PLC on Friday terminated its previously announced share placing to raise GBP1.5 million and amended its oil sands development joint venture pact with engineering company Valkor LLC.
Shares in TomCo more than doubled to 0.95 pence after resuming trading in London on Friday. Year-to-date the stock is up 41%.
The London-based oil shale exploration and technology company on Wednesday had said it would place 375.0 million new shares at 0.4 pence per share. Proceeds from the placing were be used by TomCo to form a new joint venture company Greenfield Energy LLC with Valkor to pursue the development of an oil sands plant at Asphalt Ridge, Utah.
Greenfield joint venture, in which TomCo owns 50% stake, was formed to upgrade the existing Petroteq oil sands plant in Utah, US. The upgrade to the plant included the addition of Quadrise Fuels International PLC's MSAR process, which would have processed the oil into a premium heavy fuel oil product for retail sale.
TomCo on Friday said it has revised its joint venture agreement with Valkor. Under the amended agreement, Valkor agreed, subject to Valkor being issued a licence by Quadrise to its MSAR technology, to assign to Greenfield the benefit of such licence.
Further, TomCo will no longer be required to provide funding to Greenfield of up to USD1.5 million, as previously expected, until such time as TomCo has such funds available. All other material terms of the JV Agreement remain the same.
As of Thursday, TomCo had available cash resources of approximately GBP360,000, which are believed by the company to be sufficient through to the end of 2020.
By Tapan Panchal; [email protected]
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