Tower Resources to raise GBP325,4000 as farm-outs await completion

Tower Resources PLC on Monday said it will raise £325,000 through a discounted share subscription to bolster working capital while it waits for its Cameroon and Namibia farm-outs to complete.

The Africa-focused oil and gas company will issue 2.36 billion new ordinary shares of 0.001 pence each at 0.01375 pence per share.

Tower said it could still be waiting several weeks for the substantial funding expected from the farm-outs, even if both agreements complete this month or next month.

The subscription includes broker warrants over 59.1 million new ordinary shares. The warrants have a three-year term and a strike price of 0.0275 pence per share.

Shares in Tower Resources fell 12% to 0.014 pence on Monday afternoon in London.

In Namibia, Tower has said all parties have executed the Petroleum Exploration Licence 96 farm-out deeds except the country’s Minister of Mines, Industries & Energy, the company said.

Once the deed is signed and stamped, Prime will remit an initial payment of about USD625,000.

In Cameroon, Tower said its formal request of the Prime Minister for execution of its approvals is awaiting execution. Tower understands that the approvals were already approved by the President while he was in Geneva last month.

Chief Executive Jeremy Asher said: “We are as eager as our shareholders to push forward with our work programmes on both PEL 96 and the Thali NJOM-3 well, and we remain confident of the outcomes.

“This small subscription allows us to continue with work in the meantime, and so to mitigate the impact of the time taken for completion. We will update investors when we have more concrete news in respect of each licence.”

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