UK-based Tower Resources, focused on oil and gas exploration in Africa, has strengthened its financial position by increasing its existing bridging loan from £500,000 to £750,000.
New drilling agreement in Cameroon
This convertible financing, provided by Prime Resources Limited, maintains its original terms and provides the company with greater capital flexibility for the drilling program on the Thali license, located offshore Cameroon.
The loan has a term of up to 12 months from March 25, 2025 and can be converted into ordinary shares at a fixed price of 0.05588 pence per share, which represents a substantial premium to the recent average stock price.
The transaction provides for interest at 15% per annum and a 5% performance fee, payable at the time of disposition. Tower Resources retains the ability to prepay the loan if its share price remains below the conversion level.
The capital increase will allow Tower Resources to move forward with contracting services and logistical preparations related to the NJOM-3 well, important in its exploration strategy in the Thali Block basin. In addition, the Admarine 510 rig is expected to come on stream in Cameroon from October, marking a milestone in the execution of the drilling plan.
In addition to the Cameroon project, Tower Resources is progressing negotiations on a farm-out agreement in Namibia. The company has indicated that it will provide specific information on both projects as soon as certain key milestones are completed.
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Source and photo: Tower Resources
