Tower Resources PLC (AIM:TRP, FRA:ULF1), the oil and gas company focused on Africa, said it had raised £400,000 to bolster working capital while it waits on government approvals for two farm-out deals.
The subscription was priced at 0.016p a share, a discount of about 6% to the closing bid price on 23 June,.
The company said the additional capital was a prudent step, since the substantial funding from the farm-outs could still be several weeks away even if both complete in July.
The fundraise comes as Tower awaits final sign-off on its farm-out transactions with Prime Global Energies in Cameroon and Namibia, first announced in January 2025.
In Namibia, the company said it expected ministerial approval imminently, having held meetings with the Upstream Petroleum Unit of the Office of the Presidency in March and May.
The file has since been passed to the ministry for action.
Tower said it had forwarded payment confirmation for the transfer fee this week and supplied documents missing from the ministry's file.
The ministry advised that it could not issue the approval letter on the day owing to the minister's schedule, but committed to responding no later than 1 July.
The company said the letter was the final outstanding condition for completing the Namibia farm-out, as other licence holders had already declined to exercise their pre-emption rights.
The next step would be to issue a notice of completion to all parties.
In Cameroon, Tower said the file had moved up to the Office of the Presidency following an intervention by the prime minister.
Presidential assent is required because the farm-out is contingent on a further extension of the initial exploration period of the Thali licence.
As part of the placing, Tower has agreed to issue broker Axis Capital Markets warrants over 62.5 million new shares, exercisable over three years at 0.032p, a 100% premium to the subscription price.
The shares will be admitted to trading in two tranches, expected to begin dealing on or around 29 June and 8 July.
Following both admissions, the enlarged share capital will comprise about 42.8 billion ordinary shares.
Chairman and chief executive Jeremy Asher said the company was pleased to be making progress on both approval processes, while acknowledging it wished they were already complete.
He said even a straightforward farm-out required substantial government due diligence across multiple departments, adding that Tower remained confident of the outcome.
