Placing to raise £7 million

RNS Number : 8342Z

Tower Resources PLC

29 September 2009

 



29 September 2009

Tower Resources plc (the 'Company')

Placing to raise £7m

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 Astaire Securities has raised £7,000,000 before expenses through a placing with institutional and other investors including certain Directors of the Company (the 'Placing') of 350,000,000 new ordinary shares of 0.1p each in the Company ('Ordinary Shares') (together the 'Placing Shares') at a price of 2 pence per Placing Share. 

It is intended that the proceeds of the Placing will be used to fund the Company's share of the proposed second well in Uganda and increase the Company's working capital resources. 

Of the Tower Resources Directors, Peter Taylor, Peter Blakey and Jeremy Asher have participated in the Placing and have subscribed for 20,000,000, 17,500,000, and 24,133,333 Placing Shares, respectively.

With the exception of the Directors participating in the Placing, the Directors of the Company consider, having consulted with its Nominated Adviser, Astaire Securities, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

The Placing is being effected under the Company's existing authorities, and the Placing Shares equate to 34.7 per cent of the Company's enlarged issued share capital. 

The Placing Shares will when admitted rank pari passu in all respects with the existing Ordinary Shares. It is expected that 300,866,667 Placing Shares will be admitted to trading on 6 October 2009, 25,000,000 Placing Shares on 17 October 2009 and 24,133,333 Placing Shares on 27 October 2009.

Following admission of all of the Placing Shares to trading on AIM Tower Resources' total issued and voting share capital will comprise of 1,007,162,756 ordinary shares of 0.1p and the shareholdings of the Directors will be as follows: 

	No. of shares	% of total enlarged share capital
Mark Savage*	100,000,000	9.9
Peter Blakey	80,435,772	7.9
Peter Taylor	82,935,772	8.2
Jeremy Asher*	86,000,000	8.5
Peter Kingston	2,474,545	0.2

*Mark Savage's shares are held by Bayview Investments LLC

* Jeremy Asher's shares are held through Agile Energy Limited

Enquiries: 

Tower Resources	www.towerresources.co.uk
Peter Kingston, Chairman	07802 804852
Astaire Securities, NOMAD and Broker
Jerry Keen / Lindsay Mair	020 7448 4400
Aquila Financial Limited, (PR)
Peter Reilly	0118 979 4100

 

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