Tower Resources (AIM:TRP) has announced it has raised £325,000 through an equity issue, as he Africa-focused oil and gas explorer flagged a new delay to completion of its farm-out deals with Prime Global Energies in Cameroon and Namibia.
The farm-outs, first announced in January 2025, cover Tower's Thali licence in Cameroon and its PEL96 licence offshore Namibia, both central to funding the company's near-term appraisal and development plans.
Just a month ago Tower expected at least one of the two transactions to complete in October and said it had not anticipated needing fresh funds; the board now says the extra share issue is needed to cover working capital through the additional elapsed time.
Today, the company announced it is issuing 2.5 billion new shares priced at 0.013p each, a discount of approximately 7% to the closing bid price on Friday 30 October.
In Namibia, Namibia's Minister of Mines, Industries and Energy requested amendments to Tower's PEL96 Petroleum Agreement, including updated references to petroleum legislation, which are being folded into the existing deed of assignment, novation and amendment already agreed for the farm-out.
Tower has received the amended draft deed from the ministry, which it says still contains one small error to resolve, though the draft has already been circulated to PEL96 partners for review and signature ahead of return to the ministry for execution.
Completion of the PEL96 farm-out had originally been expected in October; Tower said the minister has directly requested finalised documents, but the ministry's procedures require multiple individuals to confirm the correct version has been signed.
In Cameroon, following the extension of the Thali production sharing contract's initial exploration period announced on 5 October, Tower is pursuing completion documents being prepared by the Ministry of Mines, Industry and Technological Development, including a formal Arrêté, a letter approving the farm-out, and the final text of the deed of assignment.
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The ministry has asked Tower to supply details of the outstanding elements of the initial exploration work programme for inclusion in those documents.
"I am currently in Windhoek, where our country representative and I have been reviewing the draft texts for the PEL 96 Deed with our partners, including NAMCOR," said chairman and chief executive Jeremy Asher, adding that he plans to remain there to help ensure the minister receives the final signed deed "as soon as possible in order to effect completion."