Business
Issue of Equity
Issue of Equity.
About this update from Tomco Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6740S TomCo Energy PLC 26 September 2014 \n \n\nTomCo Energy plc\n(\"TomCo\" or the \"Company\")\n \nSuccessful placing of Ordinary Shares to raise £1.0 million\n \nTomCo Energy plc (AIM: TOM), the oil shale exploration and development company focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to announce that it has raised gross proceeds of £1.0 million (before expenses) through the conditional placing (the \"Placing\") of 200,000,000 new ordinary shares of 0.5p (the \"Placing Shares\") in the capital of the Company with new and existing investors at 0.5 pence per Placing Share (the \"Placing Price\").\n \nOperational update\nThe Company recently submitted the final details required by the Utah Division of Oil, Gas and Mining concerning TomCo's Notice of Intention to Commence Large Mining Operations and the Ground Water Discharge Permit application is progressing with final submission expected during Q4 2014.\nTomCo's technology suppliers, Red Leaf Resources Inc (\"Red Leaf\") are progressing well in their move into the full construction phase of their Early Production Capsule (\"EPS\") on their licence area 15 miles west of TomCo's Holliday Block. The Board understands that first oil will be produced from Red Leaf's EcoShale™ In-Capsule in 2015 and expects the Final Investment Decision by Total E&P USA Inc in relation to the joint venture with Red Leaf within 18 months. Additionally, under the licence agreement entered into between Red Leaf and TomCo in March 2010 the Company will be able to leverage off the Red Leaf's implementation experience from construction of their EPS capsule.\n \nUse of proceeds\nThe Directors intend that the net proceeds of the Placing will be used to complete the permitting process at the Company's Holliday Block, Utah in the United States and for working capital purposes. The Company has a low cost base with an annual cash burn of US$1.2m. As a result of the Placing the Company will now have sufficient working capital for at least 12 months from the date of this announcement.\n \nIssue of fees to advisers\nThe Board have also approved the issue of 3,000,000 ordinary shares of 0.5p at the Placing Price to advisers in lieu of fees (the \"Fee Shares\").\n \nAdmission\nThe Placing Shares and Fee Shar...