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Tower Resources PLC - Africa-focused oil and gas company - Raises GBP1.5 million via placing of 352.9 million shares at placing price of 0.425 pence each. The placing price is 14% discount to closing share price of 0.50p on Tuesday.
Proceeds will be used to repay the USD750,000 loan facility from Pegasus Petroleum Ltd along with interest and fees of USD102,500. It will also help cover programme costs in Namibia and South Africa and maintenance and planning expenditure in Cameroon to prepare for the start of drilling and testing at the NJOM-3 well.
"We are pleased to welcome Novum Securities aboard and to complete this placing, which puts the company onto a much stronger financial footing to continue planning for drilling in Cameroon while completing our recently-announced farm-out, and also allows us to move forward with work programme commitments on our Namibian and South African licenses," says Chair & Chief Executive Jeremy Asher.
"While we felt that this placing was timely and necessary, we have sought to minimise share issues and will continue to do so, especially while financing our operations at the asset level remains more cost-effective."
Novum Securities Ltd acted as sole broker on the placing.
Current stock price: 0.42 pence; down 16% on Wednesday
Year-to-date change: up 19%
By Will Paige; willpaige@alliancenews.com
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