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Tower Resources launches open offer to take new funding up to £1.5mln

The funding comes amid hopes that the company can deliver a farm-out deal to bring in a partner for its Thali licence offshore Cameroon.

cash, money, GBP, Sterling - £50 notes
New shares are offered at 2.25p

Tower Resources PLC (LON:TRP) aims to raise £569,000 of additional capital in an open offer share sale, which follows on from a £1.03mln placing last month.

It is offering 25.26mln new shares, at a price of 2.25p.

The total £1.5mln funding is conditional and requires shareholder’s approval at a general meeting, scheduled for October 20.

The placing shares would’ve amounted to 60% of the group’s total equity, but, the dilution to existing shareholders can be mitigated somewhat if they take up shares in the open offer.

In September, Tower announced the £1mln share placing. The cash injection comes amid hopes that the company can deliver a farm-out deal to bring in a partner for its Thali licence offshore Cameroon.

Jeremy Asher, Tower Resources chairman, at that time said: “Market conditions for exploration companies continue to be difficult, however Tower is fortunate in having generally low forward licence commitments and we are focusing the major part of our activity on our 100% owned Thali licence in Cameroon.

“This licence offers genuinely low risk and near-term appraisal and development opportunities.

Asher also revealed that that the farm-out process is advancing as planned, with several parties showing interest.

“We are hoping to bring those discussions to a conclusion quickly,” Asher said a month ago.

Quick facts: Tower Resources PLC

Price: 0.4 GBX

AIM:TRP
Market: AIM
Market Cap: £4.42 m
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