AIM-listed oil and gas company, Tower Resources PLC, has raised £2.3 million through a placing and share subscription to support the company’s finances as its flagship Cameroon asset advances towards pivotal milestones.
The company, in a statement, said that it has this week received a letter from the Prime Minister of Cameroon advising that he has instructed the Minister of Mines, Industry and Technological Development to accelerate the license extension process – which will in turn enable partnering efforts to conclude and allow the project to proceed.
In the meantime, operationally, the company is preparing for the drilling of the NJOM-3 well and the funds raised via placing and subscription support that work.
Tower additionally awaits news from separate financing efforts, in that regard it today noted that it is waiting for feedback from BGFI Bank Group on the outcome of its internal discussions, and is continuing discussions with various possible asset-level partners.
“While the financing discussions in respect of the NJOM-3 well are concluded, the company has raised approximately £2.3mln for the preparation of the drilling of the NJOM-3 well, including payments on account of services associated with the well, and for working capital purposes via the Placing and subscription,” the company said in a statement.
“A portion of the funds raised will also be used to advance the Company’s other 2023 work programs in Namibia and South Africa, including the ongoing basin modelling work currently underway on the company’s Namibian license PEL 96.”
The equity raise will see the issue of some 4.6bn new shares, each priced at 0.05p each.
Chief executive Jeremy Asher is participating in the fundraise, taking £50,000 worth of new shares.
Asher, meanwhile, commented: “This placing moves us a step further towards our work programme commitments in both Cameroon and Namibia, and we are glad that our progress continues to be supported by new and existing shareholders.
“We welcome Axis, who also participated substantially in our last placing, as our joint broker going forward.
“We are also very grateful for the continuing support of the government of the Republic of Cameroon, and we are looking forward to the drilling of the NJOM-3 well.”
