Tower Resources plc, (AIM: TRP), the oil and gas exploration company with interests in sub-Saharan Africa, principally in Uganda and Namibia, announces today that, in response to continuing institutional interest in the company, Blue Oar Securities has raised £360,000 before expenses through the placing (the ‘Placing’) of 18,000,000 new ordinary shares of 0.1p each in the Company(‘Ordinary Shares’) (together the ‘Placing Shares’) with institutional investors at a price of 2 pence per Placing Share.
It is intended that the proceeds of the Placing will be used to continue funding the preparation for the second exploration well in Uganda.
The Placing utilises the Company’s existing authorities, and the Placing Shares equate to 3.0 per cent of the company’s enlarged issued share capital.
Following admission to trading on AIM, 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 607,329,422 ordinary shares of 0.1p. It is expected that the Placing Shares will be admitted to trading on 20 January 2009.
Peter Kingston, Executive Chairman of Tower Resources, said:
‘We are delighted by the continuing institutional interest in the company, which will provide funds for maintaining operational preparation for the second exploration well in Uganda.
It is the intention to begin drilling the first exploration well in Uganda in March 2009 and we look forward to updating shareholders with progress on this exciting prospect.’