Tower Resources plc (‘the Company’ or ‘Tower Resources’), the oil and gas exploration company with interests in sub-Saharan Africa, principally in Uganda and Namibia, has raised £1,030,000 before expenses through the placing of 51,500,000 ordinary shares of nominal value of 0.1p each of the Company ("Ordinary Shares") (together the ‘Placing Shares’) with Directors of the Company and institutional investors at a price of 2p per Placing Share (the "Placing"). The placing price per Placing Share is at a discount of 0.5p to the mid-market price of an Ordinary Share at the close of business on the business day preceding the date of this announcement. It is intended that the proceeds of the Placing will be used for additional working capital and to fund the future development of the Company through to securing a farm in party for the Company’s project in Uganda.
The Placing has been performed under existing share authorities, and the Placing Shares equate to 8.7% of the enlarged issued share capital. Tower Resources Directors, Peter Kingston, Peter Taylor, Peter Blakey, Jeremy Asher and Mark Savage have participated in the Placing and have subscribed for 1,000,000, 5,800,000, 5,800,000, 5,800,000 and 11,600,000 Placing Shares respectively.
Following admission to trading on the AIM Market of the London Stock Exchange plc ("AIM") of the Placing Shares, which will rank pari passu in all respects with the existing Ordinary Shares, Tower Resources’ total issued and voting share capital will comprise of 589,329,422 Ordinary Shares.
Subsequent to the Placing, The Directors of the Company will have the following shareholdings:
|No. of Shares
|% of total enlarged share capital
Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that admission will take place on 28 October 2008.
Peter Kingston, Executive Chairman of Tower Resources, said:
‘Against a challenging equity market backdrop, we are delighted by the institutional interest generated by Blue Oar, which will assist in funding the group through to securing a farm in partner for our project in Uganda.’