Tower Resources PLC (AIM:TRP) is launching an equity fund raise with US-based investor Energy Exploration Capital Partners (EECP), which is agreeing to provide US$6mln over multiple tranches to fund a programme of work to satisfy its work commitments in Cameroon, Namibia and South Africa.
The company, in a statement, said it will initially raise US$1.25mln issuing shares, followed by a further tranche of US$1.75mln no earlier than three months or no later than eight months later, and a further US$3mln tranche may follow that, if required.
"We are very pleased to announce this placing to EECP,” said Tower chief executive Jeremy Asher.
“The placing has been structured specifically to fit alongside the intended bank financing led by BGFI Bank Group, which is presently awaiting group credit committee approval.
“The timing and amounts are flexible, to enable us to accommodate other sources of financing if we wish, and to adapt to the final schedule of the NJOM-3 well on the Njonji structure in our Thali PSC area in Cameroon.”
Asher added: “We are continuing to discuss alternative rig options for this critical well, which will be targeting the appraisal and testing of 18mln barrels (pMean) of contingent resources and will also be penetrating additional potential reservoirs containing further prospective resources unconnected to the original two Njonji discovery wells.
“We are excited to be moving forward with this transformative project."
A detailed description of the tranches and potential drawdown schedule was provided in Monday’s stock market statement.