Tower Resources plc (LSE:TRP), the AIM-listed oil and gas company focused on Africa, has announced a £325,000 share subscription to support working capital requirements while it continues working towards completion of its farm-out agreements with Prime Global Energies Limited in Cameroon and Namibia.
The company confirmed that both transactions, originally announced in January 2025, remain subject to final documentation and regulatory procedures. Tower had previously expected at least one transaction to complete during October 2026 but has now raised additional funding to cover the extended timetable.
Cameroon Farm-Out Awaits Final Government Documentation
In Cameroon, Tower is progressing the final documentation required to complete the farm-out of its interest in the Thali Production Sharing Contract (PSC).
Following the extension of the Initial Exploration Period announced on 5 October 2026, the Ministry of Mines, Industry and Technological Development (MINMIDT) is preparing additional formal documents.
These include a ministerial Arrêté, formal approval of the farm-out and confirmation of the final deed of assignment to be signed at completion.
At the ministry’s request, Tower has supplied details of the outstanding elements of the Initial Exploration Work Programme for inclusion in the documentation.
The company has not provided a revised completion date for the Cameroon transaction.
Namibia PEL 96 Farm-Out Progresses Through Final Review
In Namibia, Tower is working to finalise amendments to the PEL 96 Petroleum Agreement requested by the Ministry of Mines, Industries and Energy (MIME).
The changes include updated references to petroleum legislation and are being incorporated into the existing deed of assignment, novation and amendment.
Tower has received an amended draft from MIME, although one minor error remains to be resolved.
The document has been circulated to the PEL 96 partners for review and will require their signatures before being returned to the ministry for execution.
Tower said it believes the substantive amendments have been agreed, while the minister has requested finalised documentation.
However, completion remains dependent on the ministry’s procedures, including verification that the correct version of the deed has been signed by the relevant parties.
The company had originally anticipated completing the Namibia farm-out in October.
£325,000 Subscription to Support Working Capital
Tower has arranged a subscription for 2,500,000,000 new ordinary shares at 0.013p per share, raising £325,000.
The subscription price represents a discount of approximately 7% to the company’s closing bid price on 30 October 2026.
Tower said the fundraising had not been anticipated when it expected at least one farm-out transaction to complete during October. The Board subsequently determined that additional working capital was necessary to cover the extended completion period.
The company has also agreed to issue Axis Capital Markets Limited, which arranged the subscription, warrants over 62,500,000 new ordinary shares.
The broker warrants have a three-year term and an exercise price of 0.026p per share, representing a 100% premium to the subscription price.
New Shares Expected to Begin Trading in November
The subscription shares are expected to be admitted to trading on AIM in two tranches.
The first tranche of 1,005,000,000 shares is expected to begin trading at 8.00 a.m. on or around 6 November 2026.
The second tranche, comprising 1,495,000,000 shares, is expected to be admitted at 8.00 a.m. on or around 16 November 2026.
Following admission of both tranches, Tower’s enlarged issued share capital will comprise 47,663,962,786 ordinary shares, each carrying voting rights.
Following the issue of the broker warrants, the company will have 1,822,184,903 warrants outstanding, equivalent to 3.4% of its enlarged share capital on a fully diluted basis, assuming exercise of all warrants, options and restricted shares.
Chairman and CEO Comments on Completion Process
Jeremy Asher, Chairman and Chief Executive Officer of Tower Resources, commented:
“I am happy with the progress we are making towards completion of both farm-outs, and although we had hoped to avoid raising additional capital ahead of completion, we believe this small share issue is a sensible step to ensure the Company is appropriately funded throughout the final stages of the process. It provides reassurance against any unforeseen timing delays and, if those do not arise, the additional funds will still be put to good use in supporting our ongoing activities and priorities.
“I am currently in Windhoek, where our country representative and I have been reviewing the draft texts for the PEL 96 Deed with our partners, including NAMCOR, with whom we also held useful Technical Committee/Operating Committee meetings three weeks ago, and with the MIME staff. I plan to remain here this week to help see that the Minister receives the final, fully reviewed and signed PEL 96 Deed as soon as possible in order to effect completion. Nevertheless, as we have explained in previous announcements and as experience has taught us, any process that requires multiple individuals to review documents in a strict chain of custody has had the potential for delays even when everything is moving smoothly. However, we are grateful to the Minister for his commitment to finalising our documents, and we look forward to completion and the next steps in our work programme.”
More About Tower Resources
Tower Resources plc is an AIM-listed oil and gas exploration company focused on opportunities in Africa.
Its portfolio includes interests in the Thali Production Sharing Contract offshore Cameroon and Petroleum Exploration Licence 96 in Namibia.
The company is working towards completing farm-out agreements with Prime Global Energies Limited, subject to final documentation and regulatory requirements.
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