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LONDON (Alliance News) - TomCo Energy PLC on Wednesday said it has completed due diligence on a new palm oil milling project in Sierra Leone and will push ahead with the expansion into the new segment for the company.
TomCo said in May it was eyeing potential new opportunities following delays with partner Red Leaf Resources Inc on developing an early production system which, when ready, will be supplied to TomCo for use on its Holliday shale project in Utah.
On Wednesday, TomCo said it has completed due diligence on a new palm oil milling project located in the Makeni oil palm belt in Sierra Leone.
TomCo said preliminary talks with farmers at oil palm plantations in the area showed strong support for TomCo's proposed processing plant and confirmed their willingness to supply fresh fruit bunches for the company to convert into unrefined crude palm oil kernels for sale in Sierra Leone.
TomCo said the plant site has been officially surveyed and a legal title granted by the local Ministry of Lands. Attention now will move to preparing the land for the project, including building an access road.
The company said it is now reviewing debt and equity financing options to back the project.
"We believe this is a particularly attractive project in that it will allow us to get a foothold in the palm oil industry in a socially beneficially way," said TomCo Chairman Andrew Jones.
TomCo shares were up 21% early Wednesday to 0.127 pence, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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