Tower Resources Plc has raised GBP1.5mln through a share placing with the proceeds earmarked to repay a loan and support working capital.
It comes after Tower yesterday landed a key and long anticipated farm-out transaction which will enable the drilling of the NJOM-3 well in the Thali production sharing contract area in Cameroon.
Tower is to issue 352.9mln new shares priced at 0.425p each in the placing. Some US$750,000 of the proceeds will repay a loan from Pegasus Petroleum, a facility beneficially owned by Tower chair and chief executive Jeremy Asher, along with US$102,500 of interest.
The remainder will support work programme costs in Namibia and South Africa, whilst in Cameroon funds will support maintenance and planning expenditure as the company seeks to maintain the long-lead items inventory ready for the NJOM-3 programme.