Tower Resources PLC (AIM:TRP, FRA:ULF1) has raised £325,000 of additional working capital as it moves closer to completing farm-out transactions in Namibia and Cameroon that are expected to unlock further funding.
The AIM-listed group issued around 2.36 billion shares at 0.01375p each, an approximately 8% discount to Friday's closing bid price. Tower said the funding would bridge the period before money arrives under its agreements with Prime Global Energies.
In Namibia, all parties apart from the Minister of Mines, Industries and Energy have now executed the deed assigning an interest in the PEL 96 licence to Prime. Documents are being checked by the Upstream Petroleum Unit before returning to the ministry for signature and stamping.
Prime has told Tower it will then remit an initial closing payment of approximately US$625,000, with further funds due subsequently under the farm-out agreement.
Tower said its Cameroon approval file is meanwhile at the Office of the Presidency awaiting execution, with the company understanding that President Paul Biya had already approved the request while in Geneva last month.
Chairman and chief executive Jeremy Asher said the subscription would allow work to continue while the approvals are completed, including programmes at PEL 96 and the Thali NJOM-3 well.
