We need some Good luck to make some money and his dog14 Jan 2021 08:18
Placing to raise £1.25m
Thu, 14th Jan 2021 07:00
RNS Number : 6313L
Tower Resources PLC
14 January 2021
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.
This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any decision in respect of Tower Resources PLC or other evaluation of any securities of Tower Resources PLC or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.
14 January 2021
Tower Resources plc
Fundraising Update
Placing to raise £1.25 million
Planned repayment and termination of Shard Merchant Capital Loan Facility
Appointment of Joint Broker
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM listed oil and gas company with its focus on Africa, is pleased to provide the following update on its fundraising activity in respect of its assets in Cameroon and South Africa, and to announce that it has raised £1.25 million at the topco level via a placing of 384,615,384 new ordinary shares of 0.001p each (the "Placing Shares") at a price of 0.325 pence per Placing Share, with each placee receiving 1 warrant exercisable for two years at 0.65 pence per share for every 3 shares subscribed (the "Placing")
Monecor (London) Ltd, trading as ETX Capital ("ETX Capital"), has acted as sole broker of this placing and will serve as Joint Broker to the Company going forward.
The Company will use the proceeds of the placing to terminate and repay the US$500,000 loan facility from Shard Merchant Capital Ltd when or before it falls due on 28 February 2021, without triggering the conversion options in the facility agreement, and to cover working capital requirements going forward, including:
· Contributing towards the cost of the seismic reprocessing and interpretation being undertaken by the Company's partner and license operator, NewAge Energy Algoa (Pty) Ltd ("NewAge"), in respect of the Algoa-Gamtoos license in South Africa;
· Funding maintenance expenditure in Cameroon to maintain the long-lead items inventory ready for the commencement of drilling and testing of the NJOM-3 well on the Thali license;
· General working capital purposes.
The Company is already in discussion with Pegasus Petroleum Ltd (whose ultimate beneficial owner is the Company's Chairman and CEO, Jeremy Asher) regarding a further extension of the US$750,000 Pegasus Loan Facility which also becomes due on 28 February 2021.
The Company is continuing discussions with potential farm-out partners for its Thali license in Cameroon, including OilLR and
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