Tower Resources raises £5.2m in share placing to finance Cameroon acquisition

The London-listed group said it has raised the funds via the issue of 2.74bn shares priced at 0.19p each.

In a short statement released on Wednesday, the group said the funding will finance the acquisition of a 100% stake in the Thali project and will cover the payments of new regional developments in Namibia.

Located in the Rio Del Rey Basin, a sub-basin of the Niger Delta, the Thali block provides lower risk appraisal and exploration potential in this shallow water proven-producing region, the company said.

“The placing secures Tower's entry into the Thali block offshore Cameroon and provides the financial strength to commence our work programme on this block and across Tower's wider portfolio,” said group chief executive Graeme Thomson.

“Our entry into the Thali Block is a shift in our risk profile from frontier to proven basins, which has been over eighteen months in the making.”

Tower shares were up 6.32% to 0.202p at 09:39 on Wednesday.