AIM-listed Tower Resources, the Africa-focused energy company, has announced the completion of an institutional placing to Energy Exploration Capital Partners ('EECP'), a U.S.-based institutional investor, pursuant to an investment deed.
Institutional Placing:
The Placing will initially raise US$1,250,000 as a placing to the Placee of new ordinary shares (with nominal value of 0.001p each) in the Company worth US$1,362,500. Following the initial placing, the Placee will invest, at the request of the Company, up to US$1,750,000 in the aggregate for Shares worth US$1,907,500 in the aggregate, no earlier than three months and no later than eight months after the initial placing. If required by the Company, a further US$3,000,000 may be raised from the Placee for Shares worth an equivalent amount, with the Placee's consent. Further information regarding the Placing is set out below.
The proceeds from the Placing will be used by Tower to fund work programme commitments in respect of its licenses in Cameroon, Namibia and South Africa as well as for general working capital purposes.
Jeremy Asher, Tower's Chairman and CEO, commented:
'We are very pleased to announce this placing to EECP. The placing has been structured specifically to fit alongside the intended bank financing led by BGFI Bank Group, which is presently awaiting group credit committee approval. The timing and amounts are flexible, to enable us to accommodate other sources of financing if we wish, and to adapt to the final schedule of the NJOM-3 well on the Njonji structure in our Thali PSC area in Cameroon. We are continuing to discuss alternative rig options for this critical well, which will be targeting the appraisal and testing of 18 million barrels (pMean) of Contingent Resources and will also be penetrating additional potential reservoirs containing further prospective resources unconnected to the original two Njonji discovery wells. We are excited to be moving forward with this transformative project.'
Source: Tower Resources
