Tower Resources PLC (AIM:TRP) said it had secured £1.5mln of equity funding by issuing new shares at 0.175p each. Chairman Jeremy Asher bought £250,000 of new stock in the fundraiser.
The proceeds from the placing will be used as the company prepares to drill the NJOM-3 appraisal well offshore Cameroon.
The company’s local subsidiary, Tower Resources Cameroon SA (TRCSA), is working on the final details of a US$7.1mln loan from BGFI Bank Group while assessing additional funding options in the “US$5-10mln range”.
"We are as confident as we can be about the completion of the TRCSA loan financing and other asset financing to complete the NJOM-3 well,” said chairman Asher.
“We are also paying attention to the tighter markets for rigs and services, and we want to keep the operational discussions moving in parallel with the financial discussions. I have offered to participate in this placing myself to underscore my personal confidence in our reaching our goals with the NJOM-3 well."