Tower Resources PLC - Africa-focused oil and gas company - On Thursday says it raised GBP50,000 through a placing of 20.0 million shares at 0.25 pence per share. Price represented premium of 2% to Wednesday's closing price. Says shares were purchased by Chair & Chief Executive Jeremy Asher, who now holds 359.1 million shares in the company, or a 21% stake. Expects share admission to AIM market around July 1. Says funds required for working capital purposes.
Also on Thursday, amends loan agreement with Asher's company Pegasus Petroleum Ltd, so now Pegasus will receive higher royalty share that will come into force if loan is not repaid by August 15, formerly July 15. Negotiations continue with potential investors in the NJOM-3 well and expects to conclude discussions soon. Notes potential income of GBP275,000 in accumulated unpaid VAT refunds after upper-tier Tax Tribunal's judgement on May 20.
Current stock price: 0.22p, down 1.0% on Friday; closed down 8.2% on Thursday
Year-to-date change: down 36%
By Scarlett Butler; scarlettbutler@alliancenews.com
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Tower Resources (TRP)