Tower Resources PLC (AIM:TRP, FRA:ULF1) has announced a share subscription to raise £375,000, with proceeds earmarked to support working capital as its projects continue to move forward.
The company, in an RNS, noted that it will new shares at a price of 0.022p each, which represents a discount of about 8% (to yesterday's closing bid price).
The AIM-listed firm the funding is intended for working capital while it awaits approval documentation needed to complete agreed farm-outs in Cameroon and Namibia. Tower said it will also issue Axis Capital Markets Limited warrants, exercisable for three years at 0.044p per share.
Chief executive Jeremy Asher highlighted that the small cap company has been working on financing options for the next phase of development for Njonji, as well as carrying out Namibian data acquisition, ensuring the elapsed time is directed in a productive manner, and, its broker flagged investor demand and the opportunity to raise additional capital.
"We felt it was prudent to accept," Asher commented.
Providing background and context, the Tower boss added: "During my visit to Cameroon in November, made together with our intended partners Prime Global Energies Limited following the announcement of the Presidential election result, we were received by both the Prime Minister and the Director of Civil Cabinet at the Office of the Presidency. They confirmed our understanding, previously disclosed to investors, that the President supports our project, and the approvals will be processed when the new government is in place.
"We have been waiting for the new cabinet to be announced, so that the documents can be processed by the newly installed officials. In his New Year's speech, the President said the announcement would take place in "days", so we do expect it at any time. Since the holidays, we have also been contacted by the Namibian national oil company NAMCOR to confirm the resumption of their due diligence work and documentation for the additional farm-out agreement with Prime for our PEL96 licence."
In London this morning, Tower shares moved up 4% to trade at 0.026p.