Tower Resources PLC (AIM:TRP) told investors it has agreed to repay its outstanding balance to Energy Exploration Capital Partners LLC (EECP), and is raising additional capital through a £600,000 share subscription.
It will issue around 3.33 billion new shares, priced at 0.018p each. The equity issue is being arranged by the company's broker, Axis Capital Markets.
The proceeds will cover the complete repayment of the EECP facility, which amounts to US$455,000 plus fees, and the remainder will support activity on the company's licences in Cameroon, Namibia, and South Africa.
It comes after Tower secured an important licence extension for its Thali licence, offshore in Cameroon, which promises to unlock more substantial project financing and lead to the drilling of hotly anticipated well drilling.
"We are pleased to have completed this subscription and to have repaid the remaining balance of the advance from EECP,” chief executive Jeremy Asher said in a statement.
“We are pursuing multiple asset-level financing discussions, as previously disclosed, and this fundraising will allow us to focus on these over the coming months.
“We remain confident of spudding the NJOM-3 well in Cameroon this summer."