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13 Oct 2011 07:00
13 October 2011
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, INTO OR WITHIN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF IRELAND OR SOUTH AFRICA.
Tower Resources PLC
Placing to raise US$4m
Tower Resources ("Tower" or the "Company"), the AIM-listed oil and gas exploration company with assets in Uganda and offshore Namibia, announces that Northland Capital Partners Limited has raised US$4m (£2.59m) before expenses through a placing with institutional and other investors (the 'Placing') of 103,700,000 new ordinary shares (the 'Placing Shares') at a price of 2.5p per Placing Share.
The Placing is consistent with the Interim Results released on 30 September 2011 in which it was stated that the Company's intention was to issue only the smallest amount of equity for the time being, consistent with working capital requirements, while the Uganda farm-out process continues. In total, the Directors of the Company have subscribed £782,500 in the Placing, of which £770,000 represents the conversion of US$1.2m of director loans as detailed in the Interim Results. It is intended that the proceeds of the Placing will be used to finance the Company's working capital requirements until September 2012.
The Placing is being effected under the Company's existing share authorities. The Placing Shares represent 8.46per cent. of the Company's enlarged issued share capital.
Application has been made for the Placing Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will occur on or around 19 October 2011. The Placing Shares will, when admitted, rank pari passu in all respects with the existing ordinary shares. The Placing is conditional, inter alia, on Admission.
Following Admission, the Company's total issued share capital will comprise of 1,225,862,756ordinary shares of 0.1p each.As the Company does not hold any ordinary shares in treasury, the total number of voting rights in the Company is 1,225,862,756. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.
The following table sets out the number of Placing Shares subscribed by the Directors of the Company and, following Admission, their respective shareholdings and percentage interests in the enlarged issued share capital of the Company:
Placing Shares | Total shareholding | % of enlarged issued shares | |
Mark Savage | 7,700,000 | 107,700,000 | 8.79% |
Jeremy Asher | 7,700,000 | 95,200,000 | 7.77% |
Peter Taylor | 7,700,000 | 93,685,772 | 7.64% |
Peter Blakey | 7,700,000 | 91,185,772 | 7.44% |
Peter Kingston | 500,000 | 2,974,545 | 0.24% |
Executive Chairman, Peter Kingston, commented:
"We are pleased with the on-going support of our shareholder base in this Placing, against a backdrop of challenging equity markets. Tower has exciting exploration prospects in both Uganda and Namibia and I look forward to updating the market as we progress."
For more information on Tower, please visit www.towerresources.co.uk.
Contacts:
Tower Resources PLC | |
Peter Kingston, Chairman | 07802 804852 |
Northland Capital Partners Limited (Nominated Adviser and Joint Broker) Gavin Burnell, Edward Hutton Charles Vaughan (Sales) | 020 7796 8800
|
M: Communications | |
Patrick d'Ancona, Chris McMahon, Andrew Benbow | 020 7920 2358 |
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