Tower Resources Announces Placing to raise £1.5m & Director Dealings

Source: www.gulfoilandgas.com 1/14/2022, Location: Africa

Tower Resources plc, the AIM listed oil and gas company with its focus on Africa , is pleased to announce that it has raised £1.5 million via a placing and subscription of 576,923,077 new ordinary shares of 0.001p each (the "Placing Shares") at a price of 0.26 pence per Placing Share (the "Placing"), a discount of 29% to the closing share price on 13 January 2022.

Novum Securities Limited ("Novum"), has acted as sole broker on this Placing.

As part of the Placing, the Company's Chairman and CEO, Jeremy Asher, has entered into an agreement to subscribe for, in aggregate, 9,615,384 new Ordinary Shares in the Placing for £25,000 (the "Subscription").

The Company will use the net proceeds to advance its portfolio and to cover working capital requirements going forward, including:

· Funding maintenance and planning expenditure in Cameroon to maintain the long-lead items inventory ready for the commencement of drilling and testing of the NJOM-3 well, pending completion of the farm-out, and to make payments and pre-payments to contractors;
· Work programme costs in Namibia (for license PEL 96), where Tower plans to conduct a basin modelling study based on the latest data available from recent drilling in the areas adjoining the PEL96 acreage;
· Work programme costs in South Africa (for the Algoa-Gamtoos license operated by 50% partner New Age Energy Algoa (Pty) Ltd, which adjoins the Total-operated blocks 11B/12B) where the license partners are preparing for 3D seismic data acquisition in 2022/23;and
· General working capital purposes.

Related Party Transaction
Jeremy Asher is considered to be a "related party" as defined under the AIM Rules and accordingly, his participation in the Placing constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.

Dr. Mark Enfield and Paula Brancato, being the Directors independent of the transaction, consider, having consulted with SP Angel Corporate Finance LLP, the Company's Nominated Adviser, that the terms of the Subscription are fair and reasonable insofar as the Company's shareholders are concerned.

Share Capital following the Placing
The Placing is conditional on, inter alia, the Placing Shares being admitted to trading on AIM. Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that admission of the Placing Shares will become effective and that dealings will commence at 8.00 a.m. on or around 21 January 2022.

Following admission of the Placing Shares, the Company's enlarged issued share capital will comprise 2,686,095,669 Ordinary Shares of 0.001 pence each with voting rights in the Company. 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 in the interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

The Company has issued a broker warrant in favour of Novum granting it the right to acquire 7,058,824 ordinary shares for a period of two years at a price of 0.425p per share, being a premium of 16% to the closing share price on 13 January 2022.

Jeremy Asher, Chairman and Chief Executive Officer, commented:
"We are working to finalise the Cameroon farm-out, which both parties wish to see completed, and we are also encouraged by recent news reports of drilling operations underway at Graff-1 and Venus-1X, operated by Shell and TotalEnergies, respectively. However, while waiting for the farmout to complete we must continue to prepare for drilling operations and to maintain the current equipment inventory in a drill-ready state. We also want to keep moving forward in Namibia and South Africa , so that we can capitalise on both the improving economics of our acreage positions and also further positive news around us. This does require us to raise capital at this time, though we continue to seek to keep share issues to a minimum."


United Kingdom >>  5/26/2022 - Egdon Resources plc (EDR) a UK focused energy company, is pleased to provide an unaudited financial update for the third quarter of the Company’s fina...
United Kingdom >>  5/26/2022 - Union Jack Oil plc (UJO) a UK focused onshore hydrocarbon production, development and exploration company, is pleased to announce that the £1,000,000...

Bermuda >>  5/25/2022 - Seadrill Limited (“Seadrill” or "the Company") (SDRL), a leader in offshore drilling, provides financial results for the quarter ended March 31, 202...
Kenya >>  5/25/2022 - Africa Oil Corp. ("AOI", "Africa Oil" or "the Company") is pleased to announce that it has received a dividend from Prime Oil and Gas Cooperatief UA (...

Norway >>  5/25/2022 - Pandion Energy AS (“Pandion Energy”) is pleased to announce a successful bond issue of USD 75 million with a tenor of 4 years. The bond issue attracte...
Finland >>  5/24/2022 - Excelerate Energy, Inc. (EE) (the "Company" or “Excelerate”) reported its financial results for the first quarter ended March 31, 2022. ...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.