Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), announces that it has applied for suspension of trading in the Company’s ordinary shares on AIM with effect from 7:30 a.m. today pending clarification of its financial circumstances. A further update on the Company’s farm-out discussions in relation to the Thali asset and its financial position is set out below.
The Board confirms that it has been in advanced discussions with a potential partner in relation to the Company’s Thali asset. Unfortunately, despite significant time and effort on the part of Tower and the other party, a final deadline for signature of a Heads of Agreement that would have triggered a non-refundable deposit to Tower, which was set for 11 May 2017, has been missed.
The Company noted in its announcement of 8 September 2016 that the proceeds of the placing and open offer undertaken at that time would provide cash reserves through the first quarter of 2017. As this above-referenced transaction has not been concluded, the financial condition and prospects of the Company have deteriorated leading to significant uncertainty and in order to minimise forward outgoings current employees have been provided with notice of termination of their employment.
Consequently the Board is now considering alternatives for the Company, one of which may include the appointment of administrators, and a further update will be made as soon as practicable.
Jeremy Asher, Tower’s Chairman and Chief Executive Officer, commented: “We are enormously disappointed by this development. We have twice found ourselves in agreement with technically qualified partners for the Thali license, who have been unable to resolve their own financing contingencies and left us unable to move forward. The executive team have handled these negotiations appropriately, and shareholders and our counterparts at the Societe Nationale des Hydrocarbures in Cameroon have been patient and supportive; but the Board does not believe that the Company can move forward with the work programme at Thali without a partner.”
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Tower Resources plc
Jeremy Asher (Chairman and CEO)
Andrew Matharu (VP – Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Broker)
Richard Crichton/Ross Allister
+44 20 7418 8900