Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM listed oil and gas company with its focus on Africa, announces an update with respect to the financing of its Cameroon operation and an intention to raise gross proceeds of approximately £150,000 through a subscription of approximately 15million new ordinary shares of 1 pence each (the “Subscription Shares”) at a subscription price of 1.00 pence per Subscription Share (the “Subscription Price”).
Admission of the Subscription Shares to trading on AIM is expected to take place at 08:00 on or around 26 June 2019.
Cameroon Financing Update
Tower’s near-term focus remains the financing and drilling of the NJOM-3 well on its Thali license, offshore Cameroon, which is planned to spud in Q3 2019. The Company is in negotiations with several parties to finance some or all of the NJOM-3 well, which it hopes will be concluded soon. The Company is also continuing to explore longer-term options for debt, equity or pre-financing of the remainder of the first phase development of the Njonji structure, which might or might not be linked to the financing of the current well. The Company’s preferred route of financing is to conclude a transaction with an industry partner on terms that are favourable to shareholders, and that may obviate or minimise the need for further equity financing. However, depending on the terms of the asset-level deal achieved, it may also be necessary or in shareholders’ interests to raise a portion of the additional finance via the issue of further corporate equity.
Background to the Subscription
Whilst financing negotiations continue regarding the Thali license, the Company is proposing to raise approximately £150,000 for working capital purposes via a subscription for shares.
A further announcement is expected to be made shortly in connection with the proposed subscription.
The Board can confirm that the proposed subscription will not affect the repayment terms of the bridging loan of $750,000 (the “Bridging Loan”), announced on 16 April 2019. The Bridging Loan will remain due for repayment on or before 30 June 2019 subject to a grace period of 21 business days which would extend to 29 July 2019
The Board looks forward to providing further updates in due course.