Tower Resources PLC - Africa-focused oil and gas company - Raises GBP1.3 million via a placing of 384.6 million shares at a price of 0.325 pence per share. Says each placee receives a warrant attached, exercisable for two years at 0.65 pence each for every three shares subscribed. Notes it will use proceeds to terminate and repay the USD500,000 loan facility from Shard Merchant Capital Ltd due February 28 and for operational costs regarding the Algoa-Gamtoos license in South Africa. Says proceeds will also be for funding maintenance expenditure in order to be ready for drilling and testing the NJOM-3 well on the Thali license in Cameroon.
Adds it is in talks with Pegasus Petroleum Ltd, which chair and chief executive Jeremy Asher also owns, regarding a further extension of the USD750,000 Pegasus loan facility also due on February 28.
Current stock price: 0.37 pence, down 13% on Thursday
Year-to-date change: up 5.5%
By Zoe Wickens; zoewickens@alliancenews.com
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Tower Resources (TRP)