Tower Resources (LSE:TRP) has secured £375,000 through a discounted share subscription, issuing around 1.7 billion new ordinary shares at a price of 0.022p each. Admission of the new shares to trading on AIM is expected on or around 4 February 2026, increasing the company’s enlarged share capital to just under 34 billion shares.
The proceeds will be used to fund working capital requirements while Tower awaits government approvals to complete previously agreed farm-out transactions in Cameroon and Namibia. The company said relevant national authorities in both jurisdictions have reiterated their support and resumed due diligence processes. Alongside this, Tower continues to advance financing discussions for the next stage of development at the Njonji field and is progressing data analysis work in Namibia. These activities highlight the group’s tight capital position but also its determination to move its African asset base forward despite regulatory delays.
From an investment perspective, the company’s outlook remains constrained by weak financial fundamentals, including the absence of revenue, ongoing operating losses and negative free cash flow. These pressures are partially mitigated by relatively low leverage and a comparatively resilient balance sheet. Share price technicals remain weak, reflecting limited momentum, while valuation metrics are unfavourable, with a negative P/E ratio and no dividend support.
More about Tower Resources
Tower Resources plc is an AIM-listed energy company focused on developing a balanced portfolio of oil and gas and broader energy opportunities across Africa. The group’s near-term strategy centres on short-cycle development and rapid production at its Njonji project in Cameroon to generate cash flow, alongside efforts to de-risk exploration licences in Namibia and South Africa through 3D seismic acquisition in emerging hydrocarbon basins that have seen recent major discoveries.
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