Tower Resources seeking to extend bridging loan facility

Africa-focussed oil and gas company Tower Resources updated the market on its bridging loan facility of $0.75m on Tuesday, which it had first announced on 16 April.

The AIM-traded firm said it had agreed with the majority of the facility’s lenders to extend its repayment further, but was unable to reach a couple of the lenders on Monday to confirm their agreement.

It said it had no reason to believe they would not agree with the position of the other facility lenders, adding that it would confirm the terms of the extension when they were agreed with all lenders.

“The purpose of the extension is to complete other financing discussions, which are currently in progress,” the board said in its statement.

“The company continues to manage its limited cash resources carefully as these discussions are progressed.”

Tower said the bridging Loan would, in the meantime, continue to have a preferential right of repayment from any future financing in excess of $0.75m, and would remain secured by the company with interest due of 1% per month - accrued and paid on repayment - along with a fixed and floating charge over the company's assets.