Tower Resources PLC (AIM:TRP) announced it has increased its existing bridge loan to £750,000, from £500,000, to support working capital as completion of a key farm-out deal nears.
"The purpose of the Bridge Loan remains to provide the company with working capital flexibility in preparation for the drilling of the NJOM-3 well on the Thali license in Cameroon,” chief executive Jeremy Asher said in a statement.
“We are now expecting completion of the Cameroon farm-out shortly, however, with the Admarine 510 rig scheduled to be in Cameroon in October, we need to proceed with the contracting of other services.
“We are also making progress towards completion of the Namibia farm-out, and will update investors with concrete news on both projects when appropriate."
The loan, provided by Prime Resources Limited, was originally announced in March 2025. It is unsecured and has a fixed conversion price of 0.05588 pence per share.
The loan term runs for up to 12 months from 25 March 2025. And, it carries a 5% implementation fee and interest of 15% per annum.
Tower in January announced its farm-out to Prime Global Energies, which will pay Tower £4.38 million in cash, and commits to invest $15 million into the upcoming NJOM-3 well drilling programme.