Tower Resources (AIM:TRP) has raised £325,000 through a subscription for 2.36bn new shares at 0.01375p each, a discount of approximately 8% to the closing bid price on 21 August.
The AIM-listed oil and gas company, focused on Africa, is using the funds to tide it over while approvals progress on its farm-out agreements with Prime Global Energies, first announced in January 2025.
In Namibia, all parties bar the Minister of Mines, Industries and Energy have signed the deeds of assignment for the PEL 96 farm-out, with the documents currently under review by the Upstream Petroleum Unit before returning for ministerial signature.
Prime has waived a formal completion meeting and will pay an initial closing sum of approximately $625,000 once the deed is executed and stamped, with further funds to follow after statements required under the agreement are submitted.
In Cameroon, the Prime Minister's request for execution of approvals, understood to have already been approved by the President while in Geneva, awaits sign-off in the Office of the Presidency; the President returned to Yaounde the day before the announcement.
"This small subscription allows us to continue with work in the meantime, and so to mitigate the impact of the time taken for completion," said Chairman and CEO Jeremy Asher.
SP Angel analyst David Mirzai, in a note on Monday, highlighted that the Thali farm-out, in Cameroon, is the primary catalyst for Tower because it would unlock material proceeds and fund the NJOM-3 appraisal well that could confirm commerciality.
The analyst adds that Tower’s £325k subscription is intended as short-term bridging cash given that, even after approvals, there could still be several weeks' delay before the larger funding tranches arrive.
News Intelligence what this means for the company
Tower Resources raised £325,000 through a discounted share placement to fund operations while awaiting ministerial and regulatory sign-off on farm-out deals with Prime Global Energies in Cameroon and Namibia. The Namibia deed is in final review before ministerial signature; Cameroon approval is pending in the Office of the Presidency following the President's return to Yaounde. The raise is explicitly framed as a bridge to working capital, not a strategic capital event.
The raise does not alter Tower's core investment thesis, it is a tactical liquidity measure to sustain operations during regulatory delays. Completion of the farm-outs remains the material catalyst; Prime's initial $625,000 payment upon deed execution will follow, but the timing and full value of the transaction depend on approvals that remain outside the company's control.
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