New funding in addition to existing £8 million Yorkville facility
New York, March 26 - Tower Resources plc said it has obtained a £20 million equity financing facility with Darwin Strategy Ltd.
The facility is in addition to an existing £8 million standby equity distribution agreement with YA Global Master SPV Ltd., known as Yorkville. Tower said it repaid the promissory note provided by Yorkville in January.
The new facility runs for three years, and the timing and amount of draws will be decided by the company.
Shares issued under the agreement will be sold at a 5% discount to a reference price set during the 15 trading days following delivery of the subscription notice. Tower will set a minimum price with each subscription notice below which shares will not be issued.
"We do not intend to dilute shareholders unnecessarily and we see this facility simply as a useful tool to move quickly on opportunities if absolutely needed and as a backstop to ongoing operations," said Jeremy Asher, chairman of Tower, in an announcement filed with the London Stock Exchange. "Our new £20 million facility with Darwin provides us with considerable flexibility in future fundraising, which we will endeavor to use prudently and judiciously to maximize the value of our opportunities for shareholders."
Asher said that in addition to its "exciting" Namibian license, Tower also has "a number of interesting investment opportunities."
Tower is a London-based independent oil and gas exploration company with a regional focus on sub-Saharan Africa.
| Issuer: | Tower Resources plc
|
| Issue: | Equity financing facility
|
| Amount: | £20 million
|
| Expiration: | Three years
|
| Share price: | 5% discount to a reference price set during the 15 trading days following delivery of the subscription notice
|
| Warrants: | No
|
| Investor: | Darwin Strategic Ltd.
|
| Stock symbol: | AIM: TRP
|
| Stock price: | 3.15p at close on March 23
|
| Market capitalization: | £44.8 million
|
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