Proposed Issue of Equity

21 Dec 2006 07:01

Tower Resources PLC21 December 2006 Tower Resources Plc Proposed Issue of Equity Tower Resources Plc ("Tower" or the "Company"), the AIM listed oil and gasexploration and production company, today announces that it is proposing toraise £1.040 million before expenses by a placing of 52,000,000 new ordinaryshares (the "Placing Shares") at 2p per ordinary share (the "Placing Price"), tobe issued in the following two tranches: (a) the first tranche of 45,000,000 Placing Shares (the "First Tranche") and (b) the second tranche of 7,000,000 Placing Shares (the "Second Tranche"). The Placing Shares are being placed with Agile Energy Limited, a privately heldenergy investment company, chaired by Jeremy Asher, formerly CEO of PAConsulting Group, a leading management, systems and technology consulting firm.Jeremy Asher will also be appointed as a Director of the Company conditional onthe admission of the First Tranche to trading on AIM. Information on JeremyAsher will be announced on his appointment as Director as required under rule 17and schedule 2 paragraph (g) of the AIM Rules. The Company intends to apply the proceeds of the placing to the development ofits existing oil and gas assets, the expansion of its oil and gas portfolio andfor general working capital purposes. The Placing Price equates to the closing mid market price of 2p on AIM as at 20December 2006, the date prior to the publication of this announcement. ThePlacing Shares will, when issued and fully paid, rank pari passu in all respectswith the existing issued ordinary shares of the Company. Application will be made for the First Tranche to be admitted to trading on AIMand trading is expected to commence in the First Tranche on 5 February 2007. Application for the Second Tranche is conditional on the passing of resolution(s) granting the Company's directors authority to allot the Second Tranchepursuant to Sections 80 and 95 of the Companies Act 1985 and any otherresolutions required to permit the allotment of the Second Tranche to beallotted and issued by the Company (the "Second Tranche Condition"). Followingsatisfaction of the Second Tranche Condition, the subscription funds for theSecond Tranche are due no later than 30 April 2007 and it is expected that theSecond Tranche will be admitted to trading on AIM 3 business days after payment,which (assuming payment on 30 April 2007) is expected to occur on 4 May 2007. For further information, please contact: Tower Resources plcPeter Kingston, Executive Director 01373 837223 Corporate SynergyOliver Cairns 020 7448 4400 Aquila Financial LimitedPeter Reilly/Ross Bethell 020 7202 2601tower@aquila-financial.com This information is provided by RNS The company news service from the London Stock Exchange