The Tower Resources PLC (LON: TRP) share price dropped 6.67% after it raised an initial amount of US$1,250,000 from Energy Exploration Capital Partners, LLC (EECP) via an institutional placing governed by an investment deed.
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The two companies agreed that after the initial placing, EECP would invest, at Tower Resources’ request, up to US$1,750,000 for Shares worth US$1,907,500, within the next three to eight months. This period is fixed and cannot be changed.
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Today’s investment saw EECP acquire shares worth US$1,362,500 due to the discount applied by Tower Resources. EECP has also agreed to invest a further US$3,000,000 by buying TRP shares at a later date if needed.
Therefore, Tower Resources has access to up to US$6 million in funding from EECP if needed, with the first US$3 million being a done deal. The decline in TRP’s share price was triggered by the discount offered to EECP.
Tower Resources is an Africa-focused energy company with operations in Namibia, Cameroon, and South Africa. The company will use the monies to fund its work programmes in all three countries.
Jeremy Asher, Tower Resources' Chairman and CEO, commented: “We are very pleased to announce this placing to EECP. The placing has been structured specifically to fit alongside the intended bank financing led by BGFI Bank Group, which is presently awaiting group credit committee approval. The timing and amounts are flexible to enable us to accommodate other sources of financing if we wish and to adapt to the final schedule of the NJOM-3 well on the Njonji structure in our Thali PSC area in Cameroon.
“We are continuing to discuss alternative rig options for this critical well, which will be targeting the appraisal and testing of 18 million barrels (pMean) of Contingent Resources and will also be penetrating additional potential reservoirs containing further prospective resources unconnected to the original two Njonji discovery wells. We are excited to be moving forward with this transformative project.”
*This is not investment advice.
Tower Resources (TRP) share price.
The Tower Resources share price dropped 6.67% to trade at 0.14p, from Friday’s closing price of 0.15p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.